$150 million office tower to be built in Newark

NEWARK, N.J. - Newark officials say the city's economic renaissance is continuing with the downtown area's largest premium office project in 16 years.

Tucker Development Corp. detailed its plans for the $150 million Liberty Plaza on Tuesday night, which it described as a "cornerstone" for similar downtown development projects in the city. It comes amid growing interest from cost-conscious developers reacting to the U.S. economic slowdown

"Now is the time to be part of the City of Newark," said Richard Tucker, chief executive of the Highland Park, Ill.-based company.

It will build the 22-story tower — containing 410,000 square feet of premium office space — on a tract across from the Broad Street train station. The 3.5-acre site is near the New Jersey Performing Arts Center, Newark's Penn Station, Newark Liberty International Airport and only 20 minutes by train from downtown Manhattan.

Officials said groundbreaking for the project will occur when they land an anchor tenant, and the building should then be completed within 18 months.

Tim Lizura, a senior vice president with the state Economic Development Authority, said Newark officials who once considered themselves fortunate to have any attention from a single major developer are now evaluating competing offers. He said the city has also established itself as the front-runner for a new $1 billion headquarters project being planned by a Fortune 500 company that he declined to identify.

Liberty Plaza tenants may qualify for tax breaks under the urban transit tax credit program, a state initiative meant to encourage development near transit hubs. Verizon Communications won state approval Tuesday for a $20 million tax break under the program for participating in the $75 million renovation of its home in downtown Newark.

Deputy Mayor Stefan Pryor said the timing of the two projects, as many businesses and individuals are cutting back on spending, illustrates the competitive advantage Newark enjoys over other parts of the New York metropolitan area.

"Newark is positioned as the lower cost, but high-quality alternative," Pryor said.

"As people and businesses become more cost conscious, it opens a door for us," said Joe Ritchie, chief executive officer of the city's Brick City Development Corp. "The Class-A office market is very tight, and we were ready for a new building."

Class-A is a real estate term for premium office space that includes upscale amenities, such as fitness centers. Liberty Plaza will feature a fitness center, a rooftop garden, a bank, retail space and 750 parking spaces. And a second, optional phase could boost its total square footage from 440,000 to 1 million.

Downtown Newark's current 5 percent vacancy rate for Class-A office space is well below the 12 percent industry norm, according to state officials.

Robert Corrales, a spokesman for Gov. Jon Corzine, said the administration's economic assistance and recovery plan emphasizes projects that stimulate economic activity by creating jobs.

"(Liberty Plaza) is exactly the kind of development needed," Corrales said. "It will create jobs and ultimately position New Jersey for a strong recovery."

Corzine has said the economic slowdown may actually help Newark and Jersey City, as cost-conscious executives explore cheaper locations close to Manhattan.

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