SJP Properties is back in control of Hoboken’s Waterfront Corporate Center — nearly two decades after it built the 1.5 million-square-foot complex.
The developer, along with partner David Werner Real Estate Investments, purchased Waterfront Corporate Center I at 111 River Street, according to the Commercial Observer. Sources close to the deal told the outlet the building sold for about $210 million.
Veris Residential, which was known until recently as Mack-Cali Realty, was the seller of the 14-story office and retail building. The sale continues a sizable retreat from the office market for the REIT, which has in the last several months pivoted towards multifamily properties.
The purchase of Waterfront Corporate Center I closed last week, according to the Observer. Adam Spies and Andy Merin of Cushman & Wakefield arranged the sale.
The property’s retail space is fully leased, but the office space is not. There’s approximately 100,000 square feet available across two floors of the building.
The other two buildings of the complex do have fully leased office space, including a variety of tenants including EY and Walmart. Amenities at the complex include dining options, a Crunch Fitness location and access to the Hudson River.
Veris Residential purchased Waterfront Corporate Center I in 2016 from Equity Commonwealth for $235 million. The REIT has been in discussions to sell the asset for nearly two years. According to the Observer, it’s not clear if the buyers will be assuming the property’s $150 million mortgage.
Miami-based 3650 REIT provided $30 million in preferred equity to the SJP Properties and Werner joint venture to help finance the acquisition of Waterfront Corporate Center.
In one previous step back from the office market, Veris Residential in September sold its waterfront Jersey City complex to the Birch Group for $380 million. The 1.2 million-square-foot building at 101 Hudson Street counts AIG among its major tenants.
SJP Properties in September closed on its first sale at 200 Amsterdam Avenue, an embattled condo building on Manhattan’s Upper West Side. The sale came weeks after the developer scored a victory over opponents aiming to have the building’s upper floors torn down.
Werner in April made an approximately $60 million bet on another office property, this one in Harlem. The investor agreed to acquire the 55-year leasehold of an office complex at 317 Lenox Avenue from Brookfield Asset Management.
[CO] — Holden Walter-Warner