S hopping C enters N ew J ersey

Real Estate Journal — New Jersey — Section B


M id A tlantic

Largest NJ office sale of 2016 – two buildings totaling 858,000 s/f Cushman & Wakefield orchestrates $299 million sale of Jersey City office buildings

ERSEY CITY, NJ — Commercial real estate services firm Cushman & Wakefield has com- pleted the sale of 70 & 90 Hudson St., twin class A of- fice buildings on the Jersey City waterfront. This marks the largest New Jersey office deal this year. The firm’s East Rutherford, NJ-based Metropolitan Area Capital Markets Group team of An- drew Merin , David Bern- haut , Gary Gabriel , Brian Whitmer , Kyle Schmidt J

add opportunity. The asset is currently vacant after the re- cent departure of full-building tenant Barclay’s. Cushman & Wakefield’s Robert Lowe , Edward Duenas and Jim McCaffrey are handling the leasing assignment. “This is the only office avail- ability greater than 200,000 s/f and the largest contiguous availability along the Hudson Waterfront,” said Merin. “The new ownership will be able to capitalize on the market’s strong leasing momentum and cyclically improving rents compared to Manhattan.” The adjoining 12-story, 448,668 s/f 90 Hudson St. was fully occupied at the time of sale, with the investment management firm Lord, Ab- bett & Co. occupying 272,127 s/f, utilizing the site as its headquarters. And Charles Komar & Sons, an industry leader in the design, market-

ing, sourcing and distribu- tion of apparel, is occupying 159,141 s/f. “With its long-term leases and contractual rent steps, 90 Hudson Street offers in- creasing bond-type returns,” said Merin.

and Andrew MacDonald represented seller Gramercy Property Trust, and procured the buyer, Spear Street Capi- tal. The combined buildings total nearly 858,000 s/f. “These are unique, irre- placeable assets, and this transaction is clearly the The sale marks a premier transaction in a Hudson Wa- terfront office market total- ing more than 21.5 million s/f, New Jersey’s largest and fastest growing submarket. Demand drivers include prox- imity to Manhattan, with 70 & 90 Hudson St. just steps away from PATH train, Hudson-Bergen Light Rail and New York Waterway ferry service providing direct access to Downtown and Mid- townManhattan. The market has also benefited from the New Jersey Economic Oppor- tunity Act of 2013, a program designed to create and retain jobs in the state. n Castle Lanterra Properties completes $56macquisition 70 & 90 Hudson St. 49 Sixth St. most significant deal to date in 2016,” said Merin, who notes that his team had or- chestrated a previous sale of the subject properties in 2011. The 409,272 s/f, 12-story 70 Hudson St., constructed in 2000, offers a unique value-

APRIL 15 - 28, 2016


SPOTLIGHT Southern NJ 7-11B Houlihan Parnes celebrates 125th

intend on making improve- ments to the common areas,” added James Brady , vice president of operations, “which will help to elevate the tenant experience.” And while River Park is just a 10-minute walk from Raritan’s New Jersey Transit rail station, which provides access to New- ark and Manhattan’s Penn Sta- tion, Somerset County is driven by a very strong employment base that includes 16 million s/f of occupied office space, all within a 15-minute drive. This includes large sprawling corpo- rate campuses for many of the world’s largest companies. “While the millennial gen- eration is a frequent target for owners of residential com- munities, our demographic for this location are the 35 to 50 year-olds,” said Rieder, “they are highly skilled, educated, and very well compensated. It was no surprise to learn that the average household income at River Park is $119,000, or that Forbes ranked Somerset County as the 9th wealthiest county in the U.S.” n

RARITAN, NJ — River Park, a 224-unit apartment community in Somerset Coun- ty’s borough of Raritan, is the latest addition to Castle Lan- terra Properties ’ (CLP) mul- tifamily portfolio. The $56 mil- lion transaction marks CLP’s second New Jersey acquisition in the past five months, fol- lowing the addition of Harbor Pointe, a 544-unit, class A waterfront property that was purchased for $147.5 million on October 21, 2015. The seller of River Park was a global insurance group. Cushman&Wakefield ’s Met- ropolitan Area Capital Markets Group represented the seller and procured CLP as buyer in this significant trade. “Having personally invested in a substantial number of apartment communities in New Jersey over the past 18 years, I knew the $250,000 per unit valuation at which we were able to acquire this im- maculate property was a solid entry point,” said Elie Rie- der , CLP’s founder and CEO. “Historical sales of other com-


Redwood Realty Advisors sells $7.2 million property

River Park

petitive properties within this submarket have seen prices in the $275,000-285,000 range.” Constructed in 2007, River Park “was built to condominium specifications,” said Benjamin Loney , head of acquisitions for CLP. “Very high quality ma- terials were used during con- struction. Due to the financial crisis, the decision was made to turn River Park into a rental property.” River Park’s ameni- ties include an underground parking garage, a heated pool, fitness center, tennis courts,

club room, business center with conference room, recreational facilities, and onsite concierge. “Currently, this property trails its competitive set in both occupancy and rent, even though no other properties in this submarket can offer the same level of amenities found at River Park. We believe there is an immediate opportunity to increase occupancy and rent to levels that are consistent within the marketplace, even before we commence our unit renovation program. We also


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