In what it said was one of the largest office transactions since the COVID-19 pandemic hit, Woodbridge-based Onyx Equities, along with partners Taconic Capital Advisors LP, Axonic Capital LLC and Machine Investment Group, acquired a 10-building, 2.5 million-square-foot office portfolio in Morris County from Mack-Cali Realty Corp.
Following Onyx Equities’ 2018 acquisition of Mack Cali’s Bergen County office portfolio, the Morris County portfolio consists of nine buildings in Parsippany, one building in Madison and complements Onyx’s already diverse base of office holdings throughout New Jersey.
From a business perspective, Managing Principal John Saraceno Jr. said the reason Onyx was interested in the portfolio originally, and still likes it, is because it is locationally driven.
“If you look at the stuff that we’ve done – Jersey City, Newark, Bergen County and Morris County, specifically now Parsippany in Morris County, which years ago was the epicenter – these assets have plenty of potential in the office market now which are experiencing an intermediate term shift right now out of the city and into the suburbs,” said Saraceno. “We’re seeing it. I think we will sort of all experience that at least for the next year or two. And I think Parsippany could be the beneficiary.”
Like the rest of Onyx’s acquisitions, the assets will be upgraded through its classic capital improvement strategy, which has attracted tenants looking for high-quality buildings that are easily accessible to major highways and in close proximity to urban downtowns.
The acquisition venture believes this portfolio will be well-positioned to capitalize on tenants already in the suburbs looking for space, as well as potential tenant re-locations from New York City due to COVID-19.
Saraceno
Regarding leasing and filling the space in the buildings, Saraceno said Onyx offers a level of service and attention that is better than people get anywhere else.
“We have a management brand better than anybody else,” he said. “When you’re in an Onyx building, you know it, and the level of service and management that you get, I think we proved that post-COVID we are worthwhile and we will work better to have our tenants be safe and want to stay.”
“Historically, Onyx has completed some of our most complicated transactions in difficult economic climates and closing during COVID-19 certainly provided some unique challenges,” Saraceno added. “Special thanks to the effort of the Onyx and Mack-Cali teams for never giving up and finding a path to get this transaction closed.”
Editor’s Note: This story was updated on Sept. 16., 2020, at 11:02 a.m. EST to remove a quote from Onyx Chief Investment Officer Stephen Sullivan.
