20 March 2017
New Jersey
Reporter: Theo Andrew

New Jersey office portfolio acquired for $368 million


Mack-Cali Realty Corporation has acquired an office portfolio in Northern New Jersey for $368 million, one of the largest ever transactions in the state.

The portfolio consists of six office properties, totalling 1.1 million square feet. The properties are currently 91 percent occupied, with tenants such as KPMG, Wells Fargo, Merrill Lynch and UBS.

Holliday Fenoglio Fowler (HFF) closed the acquisition on behalf of the seller, RXR Realty.

Located in the Route 24 corridor, the portfolio comprises of 51, 101 and 103 JFK Parkway in Short Hills, and 1, 3 and 7 Giralda Farms in Madison.

Michael DeMarco, president of Mack-Cali, said: “This acquisition signifies Mack-Cali’s substantially expanded presence in the affluent Short Hills submarket, positioning us as the owner of nearly all of the Class A office space, as well as some of the most premier assets in the Madison submarket.”

He added: “This transaction exemplifies our strategy of owning only the best assets in strong markets that offer tenants state-of-the-art office spaces with a suite of first-class amenities.”

Jose Cruz, senior managing director at HFF, said: “These are the best suburban office assets in the New Jersey market and they had not traded in well over a decade, in particular, 51 JFK Parkway, is widely regarded as such, with significant upside in the rents.”

He added: “Short Hills, Madison, and Whippany lead the suburban New Jersey markets in investor demand, the buyer performed extremely well and they will benefit from significant growth in that submarket.”

HFF’s Cruz, Kevin O’Hearn, Michael Oliver, Stephen Simonelli, Marc Duval and Michael Tepedino represented RXR Realty in the transaction.

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