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.

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Skyline acquires New York development for $83 million
19 September 2017 | New York | Reporter: Theo Andrew
Located in the Plaza District of Manhattan, the 8,000-square foot development sits close to the Museum of Modern Art, the Broadway Theatre District and Central Park
INREV names Lonneke Löwik as new CEO
19 September 2017 | Amsterdam | Reporter: Theo Andrew
From December 2017, Löwik will be responsible for developing the association’s global professional standards as well as the implementation of the new Asset Level Index
Joint venture splashes £439 million on student housing portfolio
18 September 2017 | London | Reporter: Theo Andrew
Tristan Capital Partners has invested £439 million into a joint venture with Downing, targeting student housing in the UK
Warehouse REIT floats for £150 million
18 September 2017 | London | Reporter: Theo Andrew
According to the REIT, it is targeting a yield of 5.5 percent for the year ending March 31 2019, with a total return on 10 percent through dividends and net asset value growth
AMP Capital expands distribution team
15 September 2017 | New York | Reporter: Theo Andrew
Reporting to Boe Pahari, director of the global head of infrastructure equity at AMP Capital, Time Smith will be responsible for leading AMP Capital’s distribution team across the regions
Gateway cities real estate prices fail to recover post-crisis
14 September 2017 | New York | Reporter: Theo Andrew
RCA data shows that properties in Amsterdam, Chicago, Tokyo and Washington DC have failed to recover from the crash 10 years ago, despite the first two starting to gain momentum
Real I.S. shops for Netherlands logistics property
14 September 2017 | Rotterdam | Reporter: Theo Andrew
The acquisition follows Real I.S.’s purchase of Smartlog 1 from DHG in 2016, for €35.5 million