In one of the largest real estate transactions in state history, Public Service Enterprise Group, Inc. (PSEG) has signed a long-term lease renewal for 825,000 square feet at 80 Park Plaza in Newark, NJ. The utility company has located its headquarters in the building since 1979, in what has been a positive boon for the ongoing revitalization of Newark.
80 Park Plaza, located at 1135 Raymond Ave. in Essex County, is a 26-story, 1.03 million-square-foot, class A office tower. The steel building was completed in 1980 on 2.8 acres, and features on-site banking, fitness center and property management, along with 650 surface and covered parking spaces.
PSEG is a publicly traded and diversified energy company with annual revenues exceeding $12 billion. Its three principal subsidiaries are PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Energy Holdings. Both the tenant and the landlord, Wells Real Estate Investment Trust II, plan to make significant capital and energy-efficient improvements to the building.
"PSEG is an integral part of New Jersey and the City of Newark, and was committed to retaining its existing headquarters," said Bryn Cinque, an executive managing director of Colliers International New Jersey.
Cinque noted that there were times during the extensive analysis period when PSEG considered relocating some of its operations, but ultimately wanted to remain in Newark.
"Newark has been our home for more than 100 years and we're committed to the city," said Ralph Izzo, chairman, president and CEO of PSEG. "The finances and logistics worked and allowed us to stay in downtown Newark, a place we're proud to call home."
The PSEG renewal will continue to drive economic benefits in tax revenues and job creation for the surrounding area, building on Federal and State infrastructure investments totaling more than $100 million. Other corporations to commit to Newark include Panasonic Corp., Prudential, and the New Jersey Performing Arts Center.
"With this single transaction, PSEG makes a tremendous statement for the viability of Newark and the state of New Jersey as business-friendly environments and a center of economic activity," said Robert Martie, executive vice president of the Colliers International New Jersey region. "Transactions of this size and stature are rare, and will help define the future of this city."
Bryn Cinque, along with Colliers International New Jersey vice chairman Eric Witmondt, represented the tenant in the transaction. John Meisel of Jones Lang LaSalle represented the landlord, Wells REIT II.