"Our company's plan is to dispose of our non-core assets and re-deploy the net proceeds generated by the sales into higher yielding assets," explains Randall M. Griffin, president and chief operating officer for the self-managed REIT.

The company currently maintains a portfolio of 110 office properties totaling about nine million sf. In the case of 695 Route 46, the gain from the sale "will be deferred due to our remaining [20%] investment in the property," Griffin says.

He adds that "the sale of the partial interest in the 695 Route 46 Building will allow us to recycle equity from the building to be available for investment into acquisitions and new development. At the same time, it will also allow us to maintain management of the building."

The New Jersey sale transaction comes simultaneous to the Corporate Office Properties Trust's shedding of its Constellation Centre, a 182,000-sf office building located in Prince George's County, MD, along with two adjacent development land parcels, also part of the company's plan to shed non-core properties. As a package deal, the Maryland properties fetched a total of $21.3 million, according to Griffin. Further details were similarly not disclosed, although company officials note that they did recognize a gain of $3.4 million from the sale.

COPT focuses on ownership, management, leasing and development of suburban office properties located in select markets in the Mid-Atlantic region.