HFF recently announced the sale of a six-property, Class A office portfolio in Northern New Jersey.
51 JFK Parkway (Yardi Matrix)
Mack-Cali Realty Corp. paid $368 million for 1.1 million square feet of prime office space that HFF marketed on behalf of RXR Realty. According to the press release, this deal is one of the largest office portfolios ever traded in the state. Mack-Cali President Michael J. DeMarco expressed confidence in the future value of the company’s investment:
“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”
The Route 24 Corridor portfolio comprises 1, 3 and 7 Giralda Farms in Madison and 51, 101 and 103 JFK Parkway in Short Hills. Mack-Cali’s new office asset is 91 percent leased and very well located in the way of amenities, such as the retail base of The Mall at Short Hills and the Morristown, Madison and Summit downtown areas.
HFF’s Jose Cruz stated that these buildings are the best suburban office assets on the New Jersey office market. “In particular, 51 JFK Parkway is widely regarded as such, with significant upside in the rents,” Cruz added. Notable tenants include Merrill Lynch, Citibank, KPMG, Wells Fargo, Dun & Bradstreet, Franklin Mutual Advisors, Prudential and Pfizer.
51 John F. Kennedy Parkway is a two-building property, which includes above-ground and subterranean parking, at a 4/1,000-square-foot ratio. Originally built in 1985, the five-story steel frame structures are finished with a glass and masonry exterior and total 251,051 square feet. 101 John F. Kennedy Parkway and 103 John F. Kennedy Parkway were originally built in 1980. The six-story building at 101 JFK is 190,000 square feet and includes retail, while 103 JFK is an all-office, four-story property that totals 123,000 square feet. The JFK Parkway buildings are conveniently located 9 miles from Newark Liberty International airport.
Formerly the estate of Geraldine Rockefeller Dodge, the Giralda Farms corporate park was developed over two decades and is located along Route 124 on the border of Madison and Chatham. 1 Giralda Farms was originally built in 1983. The property includes above-ground and subterranean parking, along with 160,000 square feet of Class A office space, spread out over four stories. 3 Giralda Farms is a 1990 four-story construction, totaling 141,000 square feet of Class A Madison, NJ office space. At 203,182 square feet of Class A office space, 7 Giralda Farms is the second-largest of the portfolio. Built in 2000, this three-story Madison property also includes access to above-ground and subterranean parking.