51 JFK Parkway, Short Hills, NJ, one of the six office buildings Mack-Cali acquired from RXR Realty.
SHORT HILLS AND MADISON, NJ—Mack-Cali Realty Corporation has acquired a portfolio of six class A office properties from RXR Realty totaling 1.1 million square feet. The $368 million sale, brokered by Holliday Fenoglio Fowler, represents one of the largest office portfolios ever to trade in the state.
HFF marketed the property exclusively on behalf of RXR Realty, and brought Mack-Cali to the table as buyer.
The 91-percent-leased portfolio comprises 51, 101 and 103 JFK Parkway in Short Hills and 1, 3 and 7 Giralda Farms in Madison. Notable tenants include KPMG, Wells Fargo, Merrill Lynch, UBS, Dun & Bradstreet, Investors Bank, Citibank, Franklin Mutual Advisors, Pfizer and Prudential. All the properties are located in the high growth Route 24 Corridor, which is close to the affluent residential communities of Millburn, Summit, Livingston, Chatham and Florham Park. Additionally, the properties benefit from a strong retail amenity base including The Mall at Short Hills, the downtown areas of Morristown, Madison and Summit and the retail offerings along Route 10.
The HFF investment sales team representing the seller was led by senior managing director José Cruz, managing director Kevin O’Hearn, directors Michael Oliver and Stephen Simonelli, associate director Marc Duval, executive managing director Michael Tepedino and supported by senior managing director Andrew Scandalios.
“These are the best suburban office assets in the New Jersey market and they had not traded in well over a decade,” says Cruz. “In particular, 51 JFK Parkway is widely regarded as such, with significant upside in the rents.”
“Short Hills, Madison, and Whippany lead the suburban New Jersey markets in investor demand,” says Cruz. “The buyer performed extremely well and they will benefit from significant growth in that submarket.”
“This acquisition signifies Mack-Cali’s substantially expanded presence in the affluent Short Hills submarket—positioning us as the owner of nearly all of the class A office space, as well as some of the most premier assets in the Madison submarket,” says Michael J. DeMarco, Mack-Cali president. “This transaction exemplifies our strategy of owning only the best assets in strong markets that offer tenants state-of-the-art office spaces with a suite of first-class amenities.”