Morristown office property snags $54M loan from Morgan Stanley

Strategic Real Estate secured a 10-year, interest-only loan from Morgan Stanley this week to finance its acquisition of an office property in Morristown, NJBIZ reported. A debt and structured finance team at CBRE led by James Gunning, Donna Falzarano and Kyle Saviano sourced the financing and arranged the $53.6 million loan to cover the sponsor’s prior all-cash buy of the 320,274 square-foot office complex at 445 South Street in Morristown. Travelers Insurance, Covanta Energy Corporation and Arch Reinsurance Company are current tenants at the property, which is located just off I-287 and less than 2.5 miles from the Convent New Jersey Transit station. Property records show that the site last traded to a limited liability company associated with China Construction America in April 2013 for $70.1 million. Conshohocken, Pennsylvania-based investment manager Keystone Property Group began marketing a 487,000-square-foot Morristown office complex nearby at 412 Mount Kemble for $95 million in April. According to JLL, average direct asking rents in the Route 24 submarket reached $34.51 per-square-feet for Class A product during the first quarter of 2019, while vacancy stood at 22.5 percent. [NJBIZ]