Cushman & Wakefield has completed the $71 million sale of an office building in Morris Township, the largest single office building sale in New Jersey this year.
The buyer, China Construction, is making its initial acquisition in the New Jersey market with the four-story building on 32 acres in Southgate Corporate Park just off I-287, according to a Cushman & Wakefield release. The sale price of the 320,274-square-foot, class A building factors out to more than $221 per square foot.
“It indicates that well-located, well-tenanted, class A office buildings still attract a lot of attention in an office market that has continued to struggle,” said Andrew Merin of Cushman & Wakefield’s Metropolitan Area Capital Markets Group, who along with Gary Gabriel, David Bernhaut and Brian Whitmer, represented the seller.
Merin said the purchase “demonstrates the interest of overseas capital in U.S. real estate. Bringing foreign money into the state is a good feeling.”
The building is 88 percent leased so far, and among the four tenants signed on will be The Travelers Indemnity Co. and Marsh USA, said Merin.
The property is close to routes 10 and 24, I-78 and I-80 and offers convenient access to downtown Morristown and NJ Transit’s Morristown and Convent train stations. It was constructed in 1982 and underwent a $25 million renovation in 2007-2008, built to LEED silver standards. The building has three four-story wings, a two-story atrium lobby, cafeteria, full-size basketball court, two conference rooms and a fitness center. The site provides 1,394 parking spaces, 55 of which are covered executive spaces.
“This was a long time in the making,” said Merin. “It is a best-in-class property, an offering that attracted a great deal of interest.”
China Construction was represented in the sale by Geoff Schubert and Dorothy Chuang of CBRE.
Cushman & Wakefield's Metropolitan Area Capital Markets Group specializes exclusively in investment sales of office, industrial, multifamily and retail properties in New Jersey, New York, Connecticut and Pennsylvania. The team has completed more than $17 billion worth of transactions since 2000.