11-8-13

Mid Atlantic Real Estate Journal — New Jersey — November 8 - 21, 2013 — 7C  S hopping C enters N ew J ersey S po light C entral Three-building office complex in Hopewell, NJ Cushman & Wakefield arranges $90.8 million sale and $60 million acquisition financing

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OPEWELL , NJ — Cushman & Wake- field has arranged both the sale and acquisition financing of 1100, 1150 and 1200 Merrill Lynch Drive, a trio of class-Abuildings located in Hopewell, N.J. that total 380,000 s/f. The complex was sold by a partnership consist- ing of Fortress Investment Group , Sansome Pacific Properties , Normandy Real Estate Partners and Skyline Pacific Properties to Amer- ican Real Estate Partners for $90.8 million, or $239 per s/f. The financing amount was $60 million, or $158 per s/f. Cushman & Wakefield’s Metropolitan Capital Mar- kets Group (CMG) team of Andrew Merin , David Ber- nhaut , Gary Gabriel , Brian Whitmer and Grace Braver- man represented the sellers in the transaction. Separately, Cushman & Wakefield’s Eq- uity, Debt & Structured Fi- nance (EDSF) team of Mark Ehlinger and John Alascio arranged the acquisition fi- nancing on behalf of American Real Estate Partners. Merrill Lynch Pierce Fenner H BASKING RIDGE, NJ — A joint venture of Onyx Equities, LLC and Ruben- stein Partners announced the acquisition of 211 Mount Airy Road, a 282,000 s/f, class A office building in Basking Ridge, NJ. Since 2001, 211 Mount Airy Road has been owned by busi- ness communications provider Avaya. As part of the transac- tion, Avaya consolidated their operations into 135,000 s/f, and new ownership will have maximum leasing flexibility to market the asset to both full and partial tenant users. The property features highly efficient floor plates, signage opportunities, and an abun- dance of amenities, including

& Smith occupies all three mission critical class-A build- ings on a long-term basis. Cushman &Wakefield leasing brokers Paul Giannone, Kevin Carton and Todd Elfand as- sisted in the sale. The buildings are part of Merrill Lynch’s 12-building, 1.8 million-s/f Hopewell cam- pus, designed and purpose- built by that firm in 2001 and housing the firm’s Global Wealth and Investment Man- agement division. Bank of America acquired Merrill Lynch in 2008 and instituted a national program of long-term sale leasebacks, resulting in the subsequent $365 million sale of the entire campus to the four partners in 2012, a transaction arranged by Cush- man & Wakefield that stands as New Jersey’s largest-ever single-asset suburban office transaction. “This is among the highest quality office campuses in New Jersey, constructed to the most stringent corporate standards, with long-term oc- cupancy by a very strong credit tenant,” said Bernhaut. “With the subsequent sale of these a cafeteria, fitness center, conference facility and an au- ditorium. The venture plans to invest significant capital including replacing a por- tion of the building’s façade, expanding window lines, and upgrading the signage, lobby, cafeteria, bathrooms and amenity spaces. “We view this as a strate- gic opportunity to acquire a meticulously maintained, headquarter quality asset,” Onyx senior vice president of investments Stephen Sulli- van said. “Upon completion of our capital improvement program, 211 Mount Airy Road will offer prospective tenants the highest quality product with an outstanding

Merrill Lynch Campus

international corporations, currently has a vacancy rate of just 11.1 percent, with class-A asking rents averaging $32.58 per s/f,” he said. The mission-critical com- plex, constructed with high- end finishes, includes a

20,000 s/f data center, state- of-the-art technology, and raised flooring throughout. The campus includes multiple cafeterias, a state-of-the-art fitness center with full court basketball and multiple park- ing decks. n

three buildings, the buyer is taking advantage of a very safe long-term opportunity in the greater Princeton market, one of the best-performing markets in the state. “This market, which has attracted many national and

HFF closes sale of multi- housing development site

211 Mount Airy Road in Basking Ridge, NJ JointVentureofOnyxEquities and RubensteinPartners acquires 282k s/f

FLORHAM PARK, NJ — HFF announced the sale of Signature Place, a 25.37-acre, fully-approved multi-housing development site in Neptune, New Jersey. HFF marketed the property on behalf of a partnership be- tween Highview Homes and Chase Partners. The property sold for an undisclosed amount free and clear of debt. The site is located at 3660 Route 66, south of Corporate Drive and west of Jumping Brook Road just off Exit 100 on the Garden State Park- way and in close proximity to the Jersey Shore Premium Outlets. Once completed, the development will include 272 luxury apartment units, 8,142 square feet of retail space and associated parking. Current plans include community

amenities such as a 3,792 s/f clubhouse with fitness center, outdoor swimming pool, tot lots, rain garden, picnic area and two free-standing parking garages. The HFF investment sales team representing the seller was led by managing director Kevin O’Hearn along with senior managing director Jose Cruz and real estate analyst Marc Duval . Highview Homes and Chase Partners are leading real es- tate development companies with expertise in acquisi- tion, planning, design and construction of multi-housing communities. Each partner has experience in completing acquisitions and develop- ments throughout New Jersey and the surrounding Tri-State area. n

amenity package at very com- petitive rental rates.” Situated on approximately 52 acres, 211 Mount Airy Road is strategically located directly off a full interchange of I-287. The property is easily accessible to major highways including I-287 and I-78, pro- viding convenient access to a highly skilled labor pool. “Both Onyx and Ruben- stein have exemplary records when it comes to executing on value-add transactions in New Jersey,” Sullivan said. “By leveraging our local mar- ket knowledge and relation- ships, we anticipate creating substantial value through the repositioning and lease-up of the property.” n

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