New Jersey Office Sellers Aspire to Manhattan Pricing
Wall Street Journal reports: Although many Manhattanites would staunchly dispute any similarities their island is accused of having to neighboring New Jersey, two transactions recently closed in the Garden State with pricing metrics that rival those frequently achieved across the Hudson. The Wall Street Journal reported that, “Hartz Mountain Industries Inc. this week sold twin 12-story office buildings in Jersey City's Colgate Center in a deal that values them at about $310 million.” Citing data provided by Real Capital Analytics (RCA), this sale translated into a record-setting $375 per square foot.
The buyer, non-listed REIT CB Richard Ellis Realty Trust, purchased 70 and 90 Hudson Street for just $70 million, after agreeing to assume $240 million in existing debt. A significant sale for sure, as the property is 100% leased and supremely located with Hudson River views. However, initial yields on the properties are expected to be around 7.0%, compared to cap rates tracked by RCA in the 5.0%-range for Manhattan properties. These most recent sales demonstrate that, while commercial sales in New Jersey have clearly returned in force over the past quarter, Manhattan is maintaining its historically secure lead.
View the full article on Wall Street Journal: New Jersey Office Sellers Aspire to Manhattan Pricing
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Posted by: Nina Turner