The building had been placed on the market though Cushman & Wakefield, but the deal “took a long time to close because of a loan assumption,” Yerushalmi says. The building in such good condition that no major renovations are needed, though Gaia will do some work on the parking deck. “Buying today is below replacement cost.”

Gaia will continue to concentrate on multifamily, and hopes to close another two or three deals by year-end, Yerushalmi says, but will acquire office space as the opportunity arises. Earlier this year, the company acquired two multifamily buildings in East Orange in partnership with Harel Insurance, the third largest insurance firm in Israel.

Vision Property Management, a fully owned subsidiary of Gaia, will manage 2 Journal Square. It has been fully leased to Broadridge, a service provider to the financial services industry and a retailer since its completion in 1987, and Yerushalmi says he expects them to extend their leases. Broadridge’s is scheduled to expire in seven years. The net annual yield on the building is over 9%.

The buyer was represented by the law firm of Phillips Nizer LLP and received advice on the deal from Guy Nesdale from TimeSquare Capital.