101 Eisenhower Parkway, Roseland, NJ
ROSELAND, NJ—Vision Real Estate Partners has expanded its northern New Jersey office footprint with the $47.8 million acquisition from Mack-Cali Realty Corp. of a three-building, 610,000-square-foot portfolio on Eisenhower Parkway in Roseland. The price works out to $78 per square foot, with a seven-percent cap rate for next year, according to Real Capital Analytics, a proprietary research database.
Vision acquired the buildings at 101, 103 and 105 Eisenhower Parkway from Mack-Cali in a year-end trade with financing arranged by John Alascio and John Spreitzer from Cushman & Wakefield’s Equity, Debt and Structured Finance team, and advice from Nicholas Karali of the firm’s Metropolitan Area Capital Markets Group.
Two of the buildings (101 and 103) were built in 1980, and 105 Eisenhower Parkway was built in 2000. The properies were 64-percent occupied at the time of sale, Real Capital Analytics says.
Vision says it will launch a multi-million-dollar rebranding and renovation to modernize and unify the assets as a 51-acre, class A campus.
Vision says it seeks out quality infill properties with great potential and transforming them into superior assets with new capital and operating strategies.
“These buildings – two of which are LEED certified – occupy a prime location in a competition-constrained market,” says Vision Real Estate Partners’ Sam Morreale, founder and managing partner. “They previously have been treated as three separate entities; we recognize an excellent opportunity to rebrand them as an integrated, leading-edge campus focused on lifestyle and collaboration. The existing quality tenants and strategic location are fundamental to the ongoing success of the campus.”
The firm’s planned capital improvements include comprehensive interior and exterior upgrades, and enhanced amenities.
Morreale says Vision’s approach will be similar to the one it took at the Crossings at Jefferson Park in Whippany, NJ. Vision recently completed a multi-million-dollar rebranding/repositioning of that 525,000-square-foot campus, capped off with a new, 11,000-square-foot, stand-alone amenities center featuring enhanced gourmet food services, a multi-function lounge, conference room and a health and wellness center.
Morreale says the stable, in-place cash flow and repositioning upside attracted his firm to the Eisenhower Parkway portfolio. The buildings are home to 57 tenants, including anchors Brach Eichler; Orloff Lowenbach S. & S.; Lum, Drasco & Positan; FTI Consulting; and Marcum.
“We have acquired an attractive in-place tenant mix, with many companies that have a long-standing history with the property,” Morreale says. “We look forward to providing a progressive, quality workplace environment that enables them to attract and retain the best talent. Their response to date has been nothing but positive.”
While under contract to purchase the buildings, Vision Real Estate Partners secured renewal agreements with Lum, Drasco, Positan (19,379 square feet); DPC Data. (5,833 square feet); and Newman, McDonough, Schofel & Giger (3,990 square feet).
Timothy Greiner and Jamie Regucci from Newmark Grubb Knight Frank represented Lum, Drasco, Positan. Jon Williams from Cushman & Wakefield served as tenant representative for both DPC Data, and Newman, McDonough, Schofel & Giger.
Vision has named NGKF as leasing agent for the Eisenhower Parkway campus. David Simson and Jeff Kolodkin will head the assignment. The team is marketing availabilities from 1,000 to approximately 44,000 square feet.
“This fully amenitized complex – modernized for 2017 and the future – will offer tenants an opportunity for efficiency, growth and success,” says Simson, NGKF’s New Jersey vice chairman and chief operating officer. “We are proud to represent the new ownership in presenting this first-class working environment along the desirable I-280/Roseland-Livingston corridor.”
Situated directly off Exit 4 of I-280 near the junction of I-287, the Eisenhower Parkway campus occupies a prime location in the heart of New Jersey’s “Wealth Belt.” It offers easy access to Northern New Jersey’s major highways and regional thoroughfares, as well as abundant nearby retail, dining, hospitality and entertainment.