Now, it has been revealed that Cofinance had a partner in the class B office acquisition, namely the Stamford, CT-based RiverOak Investment Corp. And while Pathmark was acquired by A&P in late 2007 and has consolidated its administrative functions to the latter's Montvale, NJ headquarters, it still has an absolute net lease on the building through the end of 2011.
"This project has considerable downside protection because the Pathmark lease provides significant cash flow through the end of their lease term," says RiverOak managing director Stephen DeNardo. "We have reached an agreement that permits us to re-lease the space, which assists Pathmark in mitigating its rent exposure.
"This arrangement is a 'win-win' for us and Pathmark," DeNardo says. "Pathmark is happy to have us championing the leasing effort at our cost, and we're happy to have their rent to offer us the time needed in this market to fill the building."
The 200 Milik St. acquisition is the second joint venture between RiverOak and Cofinance. In July 2007, the two firms teamed up to buy the 108,500-sf Fairfield 80 Office Center in Fairfield, NJ from Bergman Real Estate and Bank of America for $13.3 million.
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