Historic 16-Story Building in Trenton, NJ to Undergo Office-to-Residential Conversion

In a recent development, 240 W. State St., one of Trenton's tallest office buildings, is set to undergo a significant transformation. Fennelly Associates, a Hamilton-based real estate firm, confirmed the sale of this 16-story, 240,000-square-foot office building in Trenton, the capital of New Jersey.

The players in this transaction: Fennelly Associates President, Jerry Fennelly, represented the seller, Garden State Commercial Properties, and the undisclosed buyer in this transaction. While the financial details of the deal have not been disclosed, it is known that the new owner plans to repurpose the office building into a multifamily residential property. The anticipated completion for this transformation is set for 2026.

A new course for a historic building: Originally constructed as a hotel in 1969, the 240 W. State St. building will be adapted to meet the growing housing demand and evolving interests in Trenton. This change in purpose comes at a time when the office sector is reevaluating its stance following the upheaval caused by the COVID-19 pandemic.

The reason behind the course shift: The third-quarter research from CBRE, a leading commercial real estate services and investment firm, indicates a significant slowdown in the office sector. Total leasing during this period saw a 44% decline over the second quarter, with negative net absorption of 288,000 square feet in the state. In Central Jersey, the decline was even sharper, at 57%, highlighting the challenges faced by the office sector.

CBRE also reported that 2.6 million square feet of office space inventory has been removed in New Jersey year-to-date. This includes conversions and demolitions, a trend aimed at addressing the surplus of office space and aligning with changing market dynamics.

The bright side: Despite the challenges faced by the office market, Trenton is witnessing an influx of employers relocating to the area. Notable among them is Taft Communications, a communications consultancy that chose Trenton for its new headquarters, citing the location's accessibility and proximity to public transportation as key factors.

Location, location, location: Situated at the strategic intersection of Calhoun Street, West State Street, and Route 29, the reimagined 240 W. State St. building will offer prospective residents excellent connectivity. It is located less than 2 miles from the Trenton Transit Center and the West Trenton Train Station, providing easy access to New York City and Philadelphia.

The vision for the future: The redeveloped building will comprise a mix of studio, one- and two-bedroom apartments, accompanied by a range of amenities, including a fitness center, pool, and ground-level café. Renovations will also extend to the property's enclosed parking garage.

As this historic office building transforms into a vibrant residential hub, it is set to become a point of pride for the local community and an exciting addition to Trenton's evolving cityscape.