JERSEY CITY-In the largest investment sale in New Jersey history in terms of price per square foot, CB Richard Ellis Investors acquired 70 Hudson St. and 90 Hudson St. here from Hartz Mountain Industries for $375 per square foot, equating to $310 million, says Cushman & Wakefield’s Metropolitan Area Capital Markets Group, which brokered the sale.

The previous record, C&W says, ranked at $353.50 per square foot for the sale of a computer center in Franklin Township to Bank of America in 2003. The Jersey City deal includes the assumption of $240 million in debt on the two Hudson River waterfront towers, which total 827,318 square feet. The capitalization rate is “in the 7s,” C&W’s Andrew Merin tells GlobeSt.com. Merin orchestrated the deal with David Bernhaut, Gary Gabriel and Brian Whitmer.

But the size of the deal wasn’t all that was unusual, Merin says. “This was one of the more unique deals in my long career,” he says. The transaction arose from a casual conversation more than a year ago with a Hartz Mountain executive. “Hartz Mountain was not compelled to sell,” Merin recalls. “He said, ‘If we could achieve a price never achieved before, we might consider selling.’”

But Hartz instructed that the properties could not be publicly marketed. Merin drew up a select list of potential buyers, but several demurred. “At that time, this price was being paid for buildings in New York City,” he says.

Another, unrelated transaction provided the opening. At a golf game after closing dinner for the sale of a property in Montvale to CBREI, their team asked Merin about other potential acquisitions. “I said, ‘We have a deal, but you’re not qualified,’” Merin says. When CBREI expressed interest, Merin called Hartz Mountain from the golf course, and got an instant go-ahead to allow the exchange of information. Confidentiality documents were signed and a deal was completed within 30 days.

The twin neoclassical buildings were completed over 10 years ago. Both are fully leased to tenants including Barclays, AIG subsidiary National Union Fire Insurance Co. and Lord Abbett & Co. Both properties benefit from long-term tax abatements.

The deal is a testament to the comeback of the market, according to C&W. “This signifies that for quality assets, for the right properties, investors are willing to pay a premium,” Merin says.