After signing a tenant to a long-term lease extension, Hartz Mountain Industries again capitalized on the strong Jersey City commercial real estate market by selling an office tower at 2 Journal Square.
Cushman & Wakefield Inc.'s Metropolitan Area Capital Markets Group arranged the purchase, which was announced Wednesday. The 325,000-square-foot building sold for $78 million to Gaia Real Estate Investments, based in San Diego.
Andrew Merin, of the capital markets team, said Hartz capitalized on the value of the long-term lease, which is for the entire building, and the substantial technological and infrastructure improvements made by tenants Broadridge Financial Solutions.
"Jersey City is definitely the best overall performing sub-office market in New Jersey," Merin said. "Vacancy rates are low, rents are high, large blocks of space are scarce."
Merin said both employers and employees are starting to move back to urban centers, so the 24-year-old building's proximity to Journal Square Station is an asset to the tenants, and therefore the owners of the building.
"Jersey City is one of the bright spots in the Jersey real estate scene right now, and Harz is clearly capitalizing on that momentum," Merin said.
The Capital Markets Group also arranged the sale of Hartz Mountain's properties at 70 and 90 Hudson Street, part of the Colgate Center, in April. That transaction set the state record for price-per-square-feet at $375.