JERICHO, NY – Privately-held commercial real estate investor, owner and operator, the Birch Group has acquired a preeminent, two-building office portfolio in Jericho, NY for $212 million.
The firm purchased the 665,592-square-foot portfolio from DRA Advisors and Onyx Equities.
The Long Island portfolio comprises two class A office buildings located at 1 and 2 Jericho Plaza.
The properties are nearly 95% leased to tenants such as AIG, Deloitte, Morgan Stanley, Ernst & Young, Valley Bank, Sterling National Bank and UBS.
Situated in an office park at the intersection of the Jericho Turnpike and Long Island Expressway, the buildings offer on-site amenities, including renovated three-story atrium lobbies, conference hubs and centers, upgraded common corridors, elevators and restrooms, landscaped outdoor areas, full-service cafes, fitness centers, 24/7 security and car-charging stations.
The transaction aligns with the Birch Group’s targeted market strategy to acquire prime, value-add office assets across the Tri-State area. The company additionally recently purchased a $255 million portfolio in Short Hills, NY. Since 2020, the Birch Group has now acquired more than $1.1 billion of commercial office assets.
“This acquisition presents an opportunity to add additional trophy quality institutional assets to our evolving office roster, furthering the Birch Group’s strategy to give tenants the optimal experience in environments that meet and exceed expectations as we enter the new year as the largest private office landlord in New Jersey,” states Mark Meisner, president and founder of the Birch Group.”
Meisner adds, “As we look ahead to the coming months, we believe companies will place a renewed interest in providing top-notch office experiences and spaces where people want to be. Our focus remains on enacting tailored improvements strategies on a case-by-case basis to create long lasting returns for our tenants and investors alike.”
“As the largest office owners in New Jersey and a prolific leader in the Tri-State area, the Birch Group is following the demographic shift to the suburbs resulting from the pandemic as leasing activity increases in targeted submarkets,” says Christopher DeLorenzo, EVP at the Birch Group. “With 2022 return to office plans coming to fruition, this trend represents an extraordinary opportunity to meet the demand for high-quality office assets in prime markets.”
Prior to completing the acquisition, the Birch Group carried out deep analysis into the subsets of the Tri-State office market.
The Jericho submarket boasts the strongest vacancy rate in the New York Tri-State suburban region and it is set to continue to attract high-quality long-term and short-term tenants to its institutional-quality properties.