Jersey City office building sells for $48M
NJ-based investor American Equity Partners bought the waterfront property from Hartz Mountain Industries
Another office building has traded hands in busy Jersey City, this time at 15 Exchange Place.
New Jersey-based office investor American Equity Partners purchased the waterfront property from Hartz Mountain Industries for $48 million, according to Connect CRE, which reports that the 11-story, 136,000-square-foot building is 71 percent leased to tenants including financial and data firms.
In addition to offices, the property includes ground-floor retail space occupied by a Starbucks and a Potbelly Sandwich Shop, as well as an outdoor courtyard with access to the Hudson River Walkway promenade and unobstructed views of the Manhattan skyline.
According to CRE Connect, JLL both procured the buyer and represented Hartz Mountain in the sale. Hartz Mountain purchased the building in 2005 for $24 million, according to a report.
In comments to the publication, AEP founder David Elkouby cited the views and proximity to mass transit as reasons why the firm was attracted to the building, which sits next door to the Exchange Place PATH station.
AEP specializes in acquiring office buildings and converting them into Class A properties, according to its website. Its portfolio consists primarily of office complexes throughout New Jersey.
Three years ago, the firm paid $38 million for a 23-story office building in East Brunswick, known as One Tower Center. Boston Properties was the seller of the 415,000-square-foot asset, which is among the tallest office buildings in Central New Jersey.
Hartz Mountain, meanwhile, has been reducing its New Jersey office holdings in recent months. The firm was one of the sellers of 707 Broad Street in Downtown Newark last year, which was picked up by a joint venture of Shift Capital, Hanini Group and CoInvestment Partners.
Like other suburban office markets, Jersey City’s has been busy recently. Last month, a 12-story office property at 70 Hudson Street was sold to Vision Properties and Hana Alternative Asset Management for $300 million — or about $690 per square foot. Spear Street Capital and PFA Pension sold the 433,197-square-foot building.
[Connect CRE] — Holden Walter-Warner