A joint venture led by Keystone Property Group has closed on the acquisition of a 150,000-square-foot office building in Fair Lawn, the company said Thursday.
The Bala Cynwyd, Pa.-based developer said it paid $12.5 million to acquire the property at 17-17 Route 208 North. The seller, Mack-Cali Realty Corp., is also part of the joint venture led by Keystone and will have continued involvement with the property.
The new ownership will now make a series of upgrades to common areas and amenities, according to a news release from the developers.
"In line with our strategy to create value through reinvestment, we look forward to executing on our plans to enhance 17-17 Route 208 North by making upgrades to the building's common areas," Bill Glazer, president of Keystone Property Group, said in a prepared statement.
The closing is part of a portfolio acquisition made under deals struck earlier this year between Keystone and the Edison-based real estate investment trust. The agreement calls for the firms to form joint ventures to acquire several Mack-Cali-owned properties throughout Northern New Jersey, New York, and Connecticut.
Mack-Cali's continued involvement will include leasing of the portfolio and sharing in management fees, the news release said.
In June, Keystone closed on four other New Jersey commercial properties as part of the deal with Mack-Cali, including 412 Mt. Kemble Ave. in Morris Township, 30 Knightsbridge Road in Piscataway, 470 Chestnut Ridge Road in Woodcliff Lake and 530 Chestnut Ridge Road in Woodcliff Lake.
"The reinvestment strategy in place for 17-17 Route 208 North will enable the partnership to both retain and attract high-caliber tenants as we capitalize on the building's prime location and space opportunities," Mitchell E. Hersh, Mack-Cali's president and CEO, said in a prepared statement. "We are pleased to be closing on this transaction, as we continue to identify new avenues for growth through strategic investment."
Mack-Cali has 2012 has been active in trying to monetize its vast office portfolio as it raises cash to grow its footprint in the multifamily sector.
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