Hartz buys the Wyndham Garden Newark Airport Hotel for $34 million

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Leonard Stern with Wyndham Garden Hotel Newark Airport (Getty, hotels combined)

Hartz Mountain Industries just acquired a Newark Liberty International Airport hotel, but has no plans to add the structure to its portfolio.

Leonard Stern’s company bought the Wyndham Garden Newark Airport hotel for $34 million with plans to demolish the building, The Real Deal has learned. Demolition could start early next year.

Eric Anton of Marcus & Millichap represented Hartz and the seller, a California-based private investor, in the transaction. Anton declined to comment and Hartz did not respond to an inquiry.

Eric M. Anton (Marcus & Millichap)

Hartz has assessed hotel parking and may eventually turn the property into a warehouse, source says TRD.

The Secaucus-based real estate investment firm has a nearby property along International Way, where it plans an 800-key hotel and 30,000-square-foot conference center across from the airport. The development would include over 2,500 parking spaces and may add retail and restaurants in the future. Plans date back to when Hartz purchased the property in 1988, The New York Times reported.

Hartz also owns a nearby 56,000 square foot warehouse along International Way.

The transaction reflects trends in commercial real estate. While the hospitality industry has struggled to recover from the pandemic, the industrial market has strengthened. Warehouse vacancy remains extremely low and demand for logistics space continues to exceed supply. The industrial market has become hot during the pandemic as many companies have expanded their e-commerce operations to accommodate more consumers shopping online.

Hartz, who has been an active trader and developer in the tri-state area since the 1960s, has expanded his industry holdings in recent years.

The company is developing a pair of warehouses at the former Newsday site in Melville, Long Island. Hartz bought the 48.5-acre site in 2018 for $54.5 million and opened there last year. Amazon signed a 10-year lease in February for a planned 246,000 square foot warehouse at the site. The other warehouse is expected to span 600,000 square feet.

The Suffolk County Industrial Development Agency delayed approval of tax relief for the project last year due to backlash involving the planned 600,000 square foot warehouse. Critics claimed Hartz was using out-of-state contractors for the project.

Meanwhile, Hartz recently reduced its office holdings in New Jersey. The company sold an 11-story, 136,000 square foot waterfront office building in Jersey City for $48 million in March and a 617,000 square foot office structure in Weehawken for $219 million in december.

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