This latest deal, combined with the earlier sale by the Rockefeller Group of three buildings totaling 610,000 sf within Rockefeller Corporate Park, Florham Park, NJ to Investcorp, amounts to a total of approximately $150 million worth of transactions. As reported by GlobeSt.com, the earlier sale was similarly arranged by C&W's FSG, and the two deals are among the largest office sales in New Jersey this year.
They also represent increased interest in New Jersey real estate by offshore investors, this despite weakened office market fundamentals, according to Andrew Merin, executive vice president and head of C&W's FSG. "Despite the challenges of the leasing market, we were able to generate significant interest in both properties," according to Merin. "In a trend that we see evolving, both properties were acquired by foreign investors and funded by overseas equity capital."
The Gale Co. developed 200 Kimble Dr. for JPMorgan Fleming, finishing construction of it early this year. The property is 85% leased on a long-term basis to pharma giant Novartis. A law firm occupies the rest of the building, according to Gary Gabriel, a senior director with C&W's FSG.
"The offering attracted a great deal of interest and multiple bidders, due to the property's appeal and its status within the market," according to Gabriel.
And as reported earlier by GlobeSt.com, the three Florham Park buildings sold by Rockefeller to Investcorp are within the former ExxonMobil headquarters campus. Two of the three buildings are fully leased to AT&T on a long-term basis, while the third is 75% occupied by Novartis.
"Although today's commercial market fundamentals are weak, a high level of investor demand continues for well-located, stabilized properties like Rockefeller Group Corporate Park and 200 Kimble Dr.," Merin says. "There has been a surge of capital into the real estate market from institutional owners and developers here and abroad, reflecting the continuing shift from the stock market to tangible investments."
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