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News release

Sayreville, NJ

Jones Lang LaSalle Seeks Fortress Mall Developer and Capital Partners for Iconic Fashion Mall and Retail Complex in NYC Metro

O’Neill Property Group and Prudential Real Estate launch $800MM development


SAYREVILLE, NJ, Dec. 8, 2010 – Jones Lang LaSalle has been retained by O’Neill Property Group (OPG) and Prudential Real Estate Investors to secure a developer to launch a fully entitled, world-class retail fortress mall in Sayreville, New Jersey. This unprecedented opportunity presents the chosen development partner an opportunity to design, develop and tenant the first newly constructed fortress mall in over a decade.
 
The site is located in one of the most sought after retail locations in the world, just 25 minutes from Manhattan.  Situated at the busiest intersection in the United States, seconds from the convergence of three of the area’s most traveled highways – the Garden State Parkway, Route 287 and the New Jersey Turnpike.   The depth of this retail market is unparalleled, ranking among the top fortress malls nationally in total households and income.  Additionally, luxury fashion retailers will be offered 250,000 square feet of state-of-the-art LED signage visible to 400,000 cars daily, delivering media exposure exceeding that of Times Square.  This unparalleled location combined with ease of access, superior wealth demographics and population density gives this site all of the elements to raise the bar by which all fortress malls will be judged.    
 
O’Neill Properties and Prudential strategically purchased the brownfield site from NL Industries, Inc. just as the market reached its nadir in the fall of 2008 and have embarked on a multimillion dollar environmental remediation project that has delivered nearly 3.5 miles of direct waterfront land, now fully approved and ready for immediate development.
 
“While many major public REITs have lost millions in recent years in an effort to entitle malls and secure proper zoning, our site is fully entitled and shovel-ready,” said Brian O’Neill, Founder and Chairman of O’Neill Property Group. “We look forward to working with the finest mall developer in the world to develop the next dominant fortress mall in the most coveted demographic in the United States.”
 
With only eight fortress malls in the country, this state-of-the-art luxury fashion complex is expected to be the most technologically advanced and the first such iconic fashion mall to combine 21-century LED signage with a traditional shopping layout. 
 
Leading the worldwide search for the development partner are Jones Lang LaSalle’s Capital Markets President Jay Koster, Managing Director Dave Wojciechowski along with Executive Managing Director and Co-Head of the Real Estate Investment Banking practice Tom Melody, and Managing Director Peter Nicoletti.
 
Said Koster, “The significant shortage of prime retail property investment opportunities, combined with a deep and growing pool of global capital seeking those opportunities, will make this development extremely appealing as we enter a noteworthy new era in fashion and retail investments.  Sovereign wealth funds, in particular, target fewer than five markets in the world, of which the New York Metro market is the premier.  Going into 2011, we expect to experience a marked uptick in transaction volume for this sector, and this joint venture is primed to take advantage of this activity.”
 
“This exceptional fortress mall will stress proven retailing formats augmented with a 21st-century synchronized LED media campaign throughout.  It’s an incredible opportunity to create international-quality retailing in a region that can support additional high-end offerings,” said Wojciechowski.  “Quality retailers are searching for new retail opportunities with a focus on premier, iconic sites and this project will enjoy a significant advantage as the first development out feeding the growth drive of these retailers.”
 
This is a unique opportunity for the top retailers in the world to obtain a New York metropolitan location—one that’s expected to draw more than 40 million shoppers each year with more than $10 billion of local retail spending and $30 billion in international retail spending capacity,” said Nicoletti.  “Knowing how vital this is to its economy, the state of New Jersey has offered tens of millions in economic incentives and subsidies for development of this world-class property.  This new chapter in retailing will be the benchmark by which all future retail developments will be judged.”
 
Jones Lang LaSalle is launching the competitive selection process of this iconic fashion mall development opportunity at the International Council of Shopping Centers’ National Conference in New York. It will be presented to the top mall developers in the world, as well as major real estate funds, insurance companies, banking institutions, sovereign wealth funds and international investment funds.  Requests for Qualifications (RFQs) will be submitted by late January and a financial and development partner is expected to be selected by the end of the third quarter 2011.