HFF Closes $368 Million Sale of 6-Property, Class A Office Portfolio in Northern New Jersey

FLORHAM PARK, N.J.--()--Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $368 million sale of a portfolio of six, Class A office properties totaling 1.1 million square feet in Northern New Jersey. This sale represents one of the largest office portfolios to ever trade in the state.

HFF marketed the property exclusively on behalf of the seller, RXR Realty, and procured the buyer, Mack-Cali Realty Corporation.

The 91-percent-leased portfolio comprises 51, 101 and 103 JFK Parkway in Short Hills and 1, 3 and 7 Giralda Farms in Madison. Notable tenants include KPMG, Wells Fargo, Merrill Lynch, UBS, Dun & Bradstreet, Investors Bank, Citibank, Franklin Mutual Advisors, Pfizer and Prudential. All of the properties are located in the high growth Route 24 Corridor, which is close to the affluent residential communities of Millburn, Summit, Livingston, Chatham and Florham Park. Additionally, the properties benefit from a strong retail amenity base including The Mall at Short Hills, the downtown areas of Morristown, Madison and Summit and the retail offerings along Route 10.

The HFF investment sales team representing the seller was led by senior managing director Jose Cruz, managing director Kevin O’Hearn, directors Michael Oliver and Stephen Simonelli, associate director Marc Duval, executive managing director Michael Tepedino and supported by senior managing director Andrew Scandalios.

“These are the best suburban office assets in the New Jersey market and they had not traded in well over a decade,” stated Cruz. “In particular, 51 JFK Parkway, is widely regarded as such, with significant upside in the rents.”

“Short Hills, Madison, and Whippany lead the suburban New Jersey markets in investor demand,” added Cruz. “The buyer performed extremely well and they will benefit from significant growth in that submarket.”

“This acquisition signifies Mack-Cali’s substantially expanded presence in the affluent Short Hills submarket—positioning us as the owner of nearly all of the Class A office space, as well as some of the most premier assets in the Madison submarket. This transaction exemplifies our strategy of owning only the best assets in strong markets that offer tenants state-of-the-art office spaces with a suite of first-class amenities,” said Michael J. DeMarco, Mack-Cali President.

About RXR Realty

RXR Realty LLC (“RXR”) is a vertically integrated private real estate company with expertise in investment management, property management, development, design, construction, leasing and financing. RXR employs approximately 380 people with expertise in a wide array of value creation activities including repositionings, uncovering value in complex transactions, various forms of debt investments and structured finance arrangements. RXR is one of the largest owners, managers, and developers in the New York metropolitan area. RXR’s operating platform manages 87 commercial real estate properties and investments comprising 23.1 million square feet located in the New York metropolitan area with an aggregate gross asset value of approximately $12.7 billion. In addition, RXR has a residential development pipeline of approximately 3,000 units located in the New York metropolitan area. For more information about RXR, visit www.rxrrealty.com.

About Mack-Cali Realty Corporation

Mack-Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development and other tenant-related services for its two-platform operations of waterfront and transit-based office and luxury multi-family assets. Mack-Cali provides its tenants and residents with the most innovative communities that empower them to re-imagine the way they work and live.

Additional information on Mack-Cali Realty Corporation and the commercial real estate properties and multi-family residential communities available for lease can be found on the Company’s website at mack-cali.com.

About HFF

Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

Contacts

HFF
Jose Cruz, (973) 549-2000
HFF Senior Managing Director
jcruz@hfflp.com
or
Kristen Murphy, (617) 338-0990
HFF Director, Public Relations
krmurphy@hfflp.com

Release Summary

HFF closed the $368 million sale of a portfolio of six, Class A office properties totaling 1.1 million square feet in Northern New Jersey.

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Contacts

HFF
Jose Cruz, (973) 549-2000
HFF Senior Managing Director
jcruz@hfflp.com
or
Kristen Murphy, (617) 338-0990
HFF Director, Public Relations
krmurphy@hfflp.com