"The building is on a major highway, in a terrific town and is leased to an extremely desirable tenant," says MDC director of acquisitions Bill Martini, who could not provide the purchase price. "It is a logical addition to our New Jersey portfolio," he adds. First mortgage financing was provided by M&T Bank.

According to Marcus & Millichap Real Estate Investment Services, office deals continue to be recorded throughout New Jersey. While sales velocity has declined steeply in the northern part of the state, the region still accounts for more than 60% of all deals closed in the last 12 months due to its high concentrations of businesses, residents and office properties. Sales prices in the north are falling in step with revenues, but an increased number of distressed property sales is skewing price trends.

More specifically, Northern New Jersey sales velocity has eased 32% during the past year, after falling 6% in the preceding 12 months, notes Marcus & Millichap. The median price has decreased 5% to $162 per square foot, compared to a 3% increase in the prior year.