A year of major deals along the Jersey City waterfront has ended on a high note, as Cushman & Wakefield on Tuesday announced the $285 million sale of 10 Exchange Place, a fully leased, 30-story office tower, to a Canadian financial company.
The nearly 750,000-square-foot building was sold by a client of the investment firm Invesco, in a deal brokered by Cushman & Wakefield's Metropolitan Area Capital Markets Group. The deal marks the fourth sale this year of a Jersey City office tower and the third valued at more than $200 million, following the sales of 70 and 90 Hudson St., 2 Journal Square and Newport Tower.
"In New Jersey, we don't see that many deals over $200 million, and here you have three that took place in one city," said Andrew Merin, a member of the East Rutherford firm's capital markets team. "Usually we'll have one or two a year at most in the whole area."
The deal also is the first entry into the New York metropolitan market for the buyer, Manulife Real Estate, an arm of Manulife Financial Corp., according to a news announcement. Merin said Manulife had been interested in Newport Tower, a 1.1 million-square-foot property that was sold in October by Brookfield Office Properties Inc. for a record $377 million.
This year's string of major office deals began in April when Hartz Mountain Industries sold 70 and 90 Hudson St., a set of 12-story towers, to CB Richard Ellis Investments for $310 million. In August, Hartz sold 2 Journal Square to San Diego-based Gaia Real Estate Investments.
Merin said the sales activity speaks to the growing interest in the city's high-quality inventory and its connection to Manhattan, especially when compared to other parts of New Jersey.
"The Jersey City waterfront, and even up to Hoboken, has performed more like New York than the rest of the suburbs," Merin said. "And it has a high level of occupancy, and rents are at good level."