A Chinese firm is investing in Newark.
Beijing Ideal Group, a investment and development company, purchased most of One Newark Center, a 22-story building on Raymond Boulevard near Military Park and Newark Penn Station, commercial realtor JLL announced this week.
The financial details of the company's purchase from its previous owners, Mack-Cali Realty Corp. and The Praedium Group, were not disclosed. But, Cushman and Wakefield, a real estate services firm, announced earlier this month it had secured $66.58 million in financing for the Chinese company to buy the sixth through 22nd floors of the building. The first five floors will remain Seton Hall Law School, and were not part of the sale.
Morgan Stanley put up the 10-year, fixed rate financing for the sale, Cushman and Wakefield said.
The portion of the building sold includes 423,028 square feet of office space, and an attached 10-story, 945-space parking deck connected to the building. The building long housed the swanky Newark Club, which shut its doors earlier this year, with news that the building's owners were putting it up for sale.
"Spurred by Newark's progressively transforming landscape, One Newark Center was one of New Jersey's most sought-after investments in 2017," JLL Managing Director Thomas Walsh said in a release about the sale.
"Prospective buyer profiles ran the gamut, and included institutional investors, regional operators and even foreign funds."
The sale marks what may be a trend of foreign investment in the state's largest city. In December of last year, a Kuwait-based investment fund bought Two Riverfront Plaza in Newark. Earlier this year, the city's mayor, Ras Baraka, launched a campaign aimed at Chinese investors, asking them to consider Newark as the "logical next step" for investment, as prices continue to rise in Manhattan and Brooklyn.
"The fact that another international buyer has invested in a Newark office building speaks volumes about the evolution of the market," said Brian Lindenberg, vice president of asset management at Praedium.
"The perception of the city continues to improve in the eyes of international investors, attracted by Newark's connectivity to New York and the rest of the tristate region."
Mack-Cali and the Praedium affiliate have been trying to sell the property since 2012 to pay off a $91.7 million loan on the property, dropping the asking price several times since then, according to a March report in Commercial Real Estate Direct, a subscription website.