Dealmaker: Cushman & Wakefield Secures $59M for New Jersey Office Asset
Cushman & Wakefield, New York, arranged $58.8 million in purchase financing for Morris Corporate Center III in Parsippany, N.J.
The financing secured by Cushman & Wakefield Managing Director John Alascio and Director Sridhar Vankayala included $15 million in future funding earmarked for property upgrades.
P3 Properties, Livingston, N.J. acquired the 541,500-square-foot Class A asset from institutional investors advised by J.P. Morgan Asset Management, New York.
Cushman & Wakefield also brokered the property’s sale. Executive Vice President Gary Gabriel headed the assignment with Vice Chairmen Andrew Merin and David Bernhaut, Managing Director Kevin Donner, Senior Director Brian Whitmer and Executive Managing Director Andrew MacDonald.
The Morris Corporate Center III complex includes four interconnected Class A buildings on a 27-acre campus at 400 Interpace Parkway. The park is 62 percent leased to four occupants including TEVA Pharmaceuticals and Ogilvy CommonHealth Worldwide with a six-plus year average remaining lease term.
Gabriel noted with this purchase, P3 Properties acquired a “headquarters-quality” office park with in-place, financeable cash flow and substantial upside. He said the MCCIII purchase represents the fifth transaction Cushman & Wakefield has completed for P3 Properties.
“In today’s improving suburban office market, as the aging millennial workforce increases its migration to the suburbs to raise families, it is apparent that corporate users are increasingly focused on providing a work environment that will enable them to attract and maintain talent,” Bernhaut said, noting Morris Corporate Center III will position P3 Properties to capitalize on this trend.
Cushman & Wakefield also sold a 10-acre Orlando, Fla. multifamily site. Senior Directors Jay Ballard and Ken Delvillar represented Intram Investments, Orlando, when it sold the land–currently permitted for nearly 300 multifamily units–to Panther Residential Management LLC, Marietta, Ga., and Integra Land Co., Lake Mary, Fla. for $4.85 million, or $161,667 per acre.
“This site is positioned among Orlando’s top performing retail centers at the gateway to the Disney theme parks in Orlando’s renowned tourist corridor,” Ballard said.
The parcel, part of Intram’s Sunrise City project, is zoned Tourist Commercial in unincorporated Osceola County. The joint venture will name the community Sunrise Parc.
Integra Land Co. and Panther Residential Management also have right of first refusal for one year on 20-plus adjacent acres, permitting two additional multifamily development phases and 676 more units, Ballard said.
