Strategic Real Estate Acquires NJ Office Complex
- Jun 19, 2019
Strategic Real Estate LLC has purchased 445 South St., a 320,274-square-foot, Class A corporate office complex in Morristown, N.J. CBRE’s Debt & Structured Finance team closed a $53.6 million loan for the all-cash acquisition.
The seller was not disclosed, but Yardi Matrix data indicates that China Construction America, a subsidiary of China State Construction Engineering Corp., paid $70.1 million to purchase the asset from Advance Realty in 2013. Built in 1984, the four-story office building hosts including Travelers Insurance, Covanta Energy Corp., Marsh USA and Arch Reinsurance Co. The vacancy rate is approximately 6.6 percent.
The suburban property was completely renovated in 2008 and has a range of amenities including an attractive two-story atrium lobby, full-service cafeteria, conference center, fitness center, outdoor basketball court and parking lot with 1,400 spaces. The site in northern New Jersey is located just off Interstate 287 and less than 1.5 miles south of the Morristown station on the Morris & Essex Line.
Morgan Stanley provided a 10-year, interest-only loan to Strategic Real Estate for the recent sale. CBRE’s James Gunning, Donna Falzarano and Kyle Saviano sourced the financing and arranged the loan on behalf of the buyer.
Last September, Morristown chalked up a major transaction when Harrison Street Real Estate Capital paid around $135.1 million to acquire a 538,100-square-foot medical office complex from National Business Parks Inc.