Morristown Plaza office complex sells for $21.5M

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A two-building, 122,103-square-foot office property in Morristown has a new owner.

Cushman & Wakefield announced the sale of Morristown Plaza, located at 161-163 Madison Ave., for $21.5 million June 8.

A team of Executive Vice Chairs Gary Gabriel and David Bernhaut, Executive Director Frank DiTommaso, Senior Financial Analyst Bill Baunach and Financial Analyst Maia Sirabian, with support from the global commercial real estate service firm’s Private Capital Group of Managing Director Andy Schwartz, Director Jordan Sobel and Senior Associate Andre Balthazard, represented Basking Ridge-based The Silverman Group, the seller, in the transaction.

The property was acquired by Pentaurus Properties.

According to Cushman & Wakefield, the 3.9-acre site will be delivered 92% leased.

“Morristown is without question one of the most vibrant communities in New Jersey and is currently in the midst of an exceptional transformation, particularly as it relates to the office sector,” DiTommaso said, listing Fortune 500 and recognizable companies including – Deloitte, Sanofi and Valley Bank – which have all made long-term commitments to the county seat.

“There is no doubt that their presence will be felt beyond just the Morristown Central Business District and will positively impact local businesses, services and even real estate assets such as Morristown Plaza for years to come,” he added.

That sentiment was forecast a few years back by Colliers International, which reported at the time that Morristown’s downtown was primed for continued growth due to a strong pipeline of new projects – both commercial, like SJP Properties’ M Station that Deloitte will call home, and residential, like Max on Morris.

Changing hands

Cushman & Wakefield said the sale is one of several in the office sector that it has arranged for The Silverman Group as that firm focuses on its robust nationwide industrial development and acquisition pipeline. According to its website, The Silverman Group currently has six office properties in New Jersey. Its overall portfolio boasts more than 175 properties across the industrial, multifamily, medical, land, retail, aviation and office segments representing 25 million owned and managed square feet of space.

Meanwhile, Mountainside-based Pentaurus’ regional footprint is expanding.

“We are pleased to be able to assist Pentaurus in enhancing and growing their local portfolio with the addition of Morristown Plaza,” Sobel said.

“Pentaurus remains focused on acquiring assets that have long-term value and superior locations,” added Austin Rolnick of Pentaurus Properties. “Possessing both of these attributes, with the ability to improve the asset, made Morristown Plaza a perfect fit for our portfolio.”

In Madison, Pentaurus and its joint venture partner Lord Fisher Capital launched a multimillion-dollar repositioning last year at the former headquarters of Quest Diagnostics.

Morristown Plaza features a PNC Bank branch with drive-thru services; surface and covered parking options; and a recently renovated amenity center with full-service café, fitness center and shared conference facility. It is located minutes from downtown, with direct access to Interstate 287, and near the Morristown NJ Transit Station.