www.marejournal.com S HOPPING C ENTERS N EW J ERSEY S PO LIGHT N ORTHERN NAI Hanson’s Lundberg represents Life Time Fitness in Montvale sale On behalf of Hartz Mountain Industries, Jones Lang LaSalle secures $48 million N EWARK, NJ — On b e ha l f o f Ha r t z Mountain Industries,
Mid A TLANTIC R EAL Estate Journal — New Jersey — September 14 - 27, 2012 — 7B
Montvale. Purchased by Life Time Fitness, Inc., the site was formerly home to BMW of North America, which used the facility for corporate offices, parts distribution, automotive repair and me- chanic training. The property became available in late 2009 when the auto manufacturer relocated its operations to other locations throughout the Northeast region. The Jones Lang LaSalle team of managing directors Robert Kossar, SIOR, David Knee and Joel Lubin and vice presidents Blake Chroman and Christopher Hile repre- sented the seller, a group of charitable trusts, while NAI Hanson senior vice president Kenneth Lundberg repre- sented Life Time Fitness. The new ownership has obtained approvals to level the existing structure and construct a state-of-the-art fitness center on the site. Life Time is headquartered in Minnesota and currently operates 105 centers in the Passaic, and by restructuring the note, we will be able to offer more aggressive lease rates and further build on the leasing mo- mentum already established.” Prior to the closing, 155 Pas- saic Street was 57% occupied but due to a pre-leasing effort during negotiations on the deal, occupancy was brought up to 82%. New tenants at the build- ing include healthcare market- ing firm Daniella Koren, Inc., mortgage company Mortgage Master, Inc., public account- ing firm Weinberg Lieberman & Co., and law firm Castano Quigley LLC. Available spaces in the office range from 1,400 to 3,500 s/f. As part of TEI’s Art in Buildings program, TEI will create a rotating art gallery of work by local and national art- ists in the lobby. “We are excited to expand our relationship with Time
United States and Canada. “With BMW vacating the site after nearly three de- cades of occupancy, this was a rare opportunity to lease or buy a free-standing build- ing in sought-after Bergen County, and it attracted a significant amount of inter- est from a diverse group of prospective buyers and ten- ants,” Chroman said. “With the terrific demographics in the area and the built-in clientele within the business park, Life Time viewed the site as the ideal location to expand its footprint in New Jersey.” According to Chroman, the property’s location lends itself very well to a high-end gym. Specifically, it is lo- cated within a corporate park where tenants include Sony, Mercedes Benz and KPMG. Situated on a 9.3-acre tract of land, the property is located adjacent to the Garden State Parkway, with easy access to I-287 and in close proximity to New York City. ■ Equities,” said Michael Berg- man, president and CEO for Bergman Real Estate Group. “In both transactions, the part- nership with Time Equities has enabled us to recapitalize and restructure these assets and positions us strongly to con- tinue executing on our lease-up strategy.” Situated on nearly four acres, 155 Passaic Avenue is a head- quarters-quality building that features a four-story, sky-lit atrium, on-site building man- agement, and renovated com- mon areas. Tenants enjoy the convenience of being located adjacent to Essex County Air- port and in close proximity to Interstate 80 and Routes 23 and 46. The property is accessible to a wide range of amenities including hotels, res- taurants, shops, several parks and country clubs. ■
Inc., Jones Lang LaSalle an- nounced the firm has secured $48 million in credit ten- ant lease financing for an industrial warehouse/bus maintenance complex located in Newark. A foreign CTL investor provided the 4.323%, fixed-rate, 24-year loan for the 21.7 acres of land and 638,092 s/f property known as 601 Doremus. The property is leased to New Jersey Transit Corporation through 2036. Managing director Joe Garibaldi and executive vice presidents Bill Cavagnaro and Brion Haist led the Jones Lang LaSalle team on this transaction. “This was an extremely complex financing assign- ment for a very unique prop- erty that involved a modi- fied industrial condominium regime. The loan provides financing for a critical facil- ity for New Jersey Transit, in which the entire city’s FAIRFIELD, NJ — New York-based Time Equities, Inc. (TEI) in a joint venture with Bergman Real Estate Group recently acquired 155 Passaic Avenue, a four-story office building in Fairfield for $5.6 million. Originally acquired by Berg- man Real Estate Group in 2001, the 88,000 s/f building will be refinanced as part of a strategic plan to reposition the property with the strong financial backing of Time Equities. This is the second transaction the two companies have partnered on within the last three months. In April, TEI and Bergman formed a joint venture to purchase the loan for 51 Haddonfield Road, a 100,000 s/f office building in Cherry Hill. “After working closely with Bergman on the acquisition of
601 Doremus in Newark
buses are maintained,” said Garibaldi. “Through the strength of the tenant, as well as the owners, we were able to unlock substantial trapped value in this essen- tial property.” This type of credit tenant lease financing derives its proceeds from the direct sale of bonds to investors in the global capital markets, not
from capital by commercial real estate lenders. CTL fi- nancing is best applicable to single tenant properties oc- cupied by investment-grade tenants under long-term triple-net leases, such as this. In a separate transaction, Jones Lang LaSalle rep- resented ownership in the sale of One BMW Plaza in
In a Joint Venture with Bergman Real Estate Group, Time Equities, Inc. purchases 155 Passaic Avenue for $5.6 million
155 Passaic Avenue in Fairfield
51 Haddonfield, we are confi- dent that 155 Passaic Avenue will provide another excellent investment opportunity,” said
Aaron Medeiros, director of acquisitions at Time Equities. “Within the last year, occupan- cy has continued to rise at 155
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