MORRISTOWN, NJ–Cushman & Wakefield has orchestrated the $80 million sale of three class-A Morris County, NJ office buildings totaling 410,000 square feet. The sale price averages $195 per square foot for the portfolio.
“The sale is part of a strategic repositioning of the seller's portfolio,” said Andrew Merin, who led the Cushman & Wakefield team representing the seller, Edison, NJ-based Alifieri. “Alfieri had held these prime assets for a substantial period of time and has done very well with them. They are assets that will continue to grow in value over time with attentive management and the ability to raise rents.”
Also on Merin's team were David Bernhaut, Gary Gabriel, Brian Whitmer and Kyle Schmidt of the firm's Metropolitan Area Capital Markets Group. The buyer, East Rutherford, NJ-based Lincoln Equities, was represented in-house.
The just-sold assets include:
- Harding Plaza, 1200 Mt. Kemble Avenue, Morristown, is a 106,000 square foot building constructed in 1979 and extensively renovated in 2006. The three-story property was 85 percent leased at the time of sale, with major tenants including Morgan Stanley, Regent Atlantic Capital and LG Electronics.
- Constructed in 1982 and renovated in 2000, the three-story 100 Southgate Parkway in Morris Twp. totals 151,400 square feet on 19 acres. The asset is 100 percent leased to Verizon Wireless and Porzio, Bromberg and Newman.
- Patriot's Plaza, built in 1980, has 151,000 square feet in two three-story buildings at 60 Columbia Turnpike in Morristown.
All three of the just-sold buildings are near downtown Morristown and provide access to I-287, I-78, I-80, I-280, and Routes 46, 10 and 24.
“These are extremely well-located assets in the Morristown market, which we feel is stronger than the overall Morris County market,” says Joel Bergstein, president of Lincoln Equities. “Also, Patriot's Plaza provides the opportunity to reposition an asset that has shown its age. Our plans call for a new HVAC system, lobby and elevator renovations and repaving the parking lot. Patriot's Plaza will have a 75,000-square-foot block available this summer in a fully renovated building. The repositioned, renovated building is in a location that is irreplaceable.”
“This offering attracted considerable interest,” says Merin. “For office buildings located in the right markets, there is currently substantial investment demand.”
Morristown has experienced healthy demand in recent history, exceeding 200,000 square feet of annual leasing activity in three of the last four years, According to Cushman & Wakefield Research. During Q1, deal volume registered more than 70,000 square feet alone.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
