MORRIS TOWNSHIP, NJ-In the biggest office building sale this year so far in the state, Cushman & Wakefield has arranged the $71 million trade of 445 South Street here.
The 320,274-square-foot building fetched $221 per square foot by C&W's calculation. The buyer was China Construction, which was represented by Geoff Schubert and Dorothy Chuang of CBRE.
Andrew Merin, Gary Gabriel, David Bernhaut and Brian Whitmer of C&W's Metropolitan Area Capital Markets Group marketed and sold the building.
Merin said the deal “illustrates that well-located, well-tenanted, class A office buildings still attract a lot of attention in an office market that has continued to struggle.” The state's troubled suburban office market has an overall vacancy rate of around 25%.
Merin said that this is China Construction's first acquisition in New Jersey.
The building – whose tenants include The Travelers Indemnity Co. with 105,698 square feet and Marsh USA, with 54,376 square feet – is situated within Southgate Corporate Park. The four-story building was built in 1982 and given a $25 million renovation five years ago by Advance Realty.
The building has three, four-story wings connected by a two-story atrium lobby. Amenities include a full-service cafeteria, a full-size basketball court, two common area conference rooms, and a fitness center.
The property has 1,394 parking spaces, including 55 covered executive parking spaces. Marsh has built out its space to LEED Silver standards.
The property is located off I-287, near Routes 10 and 24, I-78 and I-80. It is near NJ Transit's Morristown and Convent train stations.
“This is a best-in-class property, an offering that attracted a great deal of interest,” said Merin.
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