The Crossroads Corporate Center office property in Lawrence Township – part of the Princeton submarket – has a new owner.
JLL said March 28 it represented Gilbane Development Co., the seller, in the transaction with a joint venture formed by Simone Realty Inc., which acquired the asset. Financial terms were not disclosed.
The JLL team was led by Senior Managing Directors Jeremy Neuer, Jose Cruz and Kevin O’Hearn; Managing Director Thomas Romano; and Directors J.B. Bruno and Jason Lundy.
Since it was built in 1991, the 100,925-square-foot property located at 3150 Brunswick Pike has undergone several renovations, according to JLL. The three-story building offers a dramatic, two-story lobby; exterior balconies; and a high parking ratio.
A company representative did not immediately respond to a question concerning the property’s occupancy rate at the time of sale.
Situated on more than 45 acres, the Mercer County site also includes a large pond with scenic views.
Crossroads Corporate Center is a 100,925-square-foot office property located in the Princeton submarket. – JLL
The property is located at the interchange of Interstate 295 and U.S. Route 1, lending it strategic access along with high visibility.
While JLL identified “diminishing leasing volume” as a theme for the Garden State’s office sector through 2022 in its Fourth Quarter sector report for that year, the firm said it expects office occupiers to continue looking for new space – as opposed to renewals – in 2023. Approximately 62% of transactions for more than 10,000 square feet covered new leases last year—the highest percentage in a decade, JLL pointed out. Over the past two years, the figure represented an uptick, as well, from the recorded “just over 50% of deals” in new leases.
In the Princeton submarket, JLL reported a total vacancy rate of 22.2%, under the state’s 24.5%, with average asking rents trending toward the top of the pack at $28.90 per square foot (the state average was $30.03 per square foot).
In Jersey City’s Journal Square, a luxury, mid-rise apartment building secured refinancing to the tune of $58 million.
JLL Capital Markets represented the borrower, 3 Journal Square Urban Renewal LLC, to arrange the seven-year, fixed-rate loan through a life insurance company, the firm announced March 15.
The property features 240 units – a mix of one-, two- and three-bedroom residences – with bright, open layouts, full-size washers and dryers, chestnut vinyl flooring, granite kitchen countertops, stainless steel appliances, custom kitchen cabinetry and quartz bathroom countertops.
Community amenities include a state-of-the-art health and fitness center, a yoga studio, a resident lounge with fireplace and billiards, a rooftop deck with Manhattan skyline views and lounge areas and more.
The JLL Capital Markets Investment Sales Advisory team was led by Senior Managing Director Thomas Didio, Senior Director Thomas Didio Jr., Director Gerard Quinn and Analyst John Cumming.
The June 2017 ribbon cutting at 3 Journal Square. – MARIO MARROQUIN
“This financing is a testament to the quality of product the developer has delivered to the market,” Didio said in a statement. “The lender stepped up to the plate and delivered very strong economic terms to allow the partnership to continue operating this tremendous asset in a burgeoning submarket of Jersey City. JLL is grateful to play a role in continuing to grow the relationship between the developer and lender teams.”
“This project is the final phase of a development that began in 1980,” Joe Panepinto, CEO and president of Panepinto Properties, said at the time. “The city owned this property and it was vacant for 30 years, paying no taxes. They put the property up for sale. First time they put it up, no one bid. Second time they put it up, I was the only one who bid.”
Located at 2955 John F. Kennedy Blvd., 3 Journal Square offers walkability to area amenities, in addition to the Journal Square Path Station. Automobile travel is convenient due to its proximity to major north-south and east-west corridors and connections to the New Jersey Turnpike and Pulaski Skyway.
Lincoln Equities Group has been busy in the industrial sector, with more than 2 million square feet of space under development. And that pipeline is growing, with the recent start of work by the East Rutherford commercial real estate owner, manager and developer on a project just across the Jersey border.
Rendering for Lincoln Equities @ Rockland County. – JLL
LEG recently broke ground on a 220,000-square-foot speculative warehouse project in Rockland County, N.Y., marking the first new industrial property to come to the county since 2009. On March 8, JLL Northeast Industrial announced it was retained as exclusive leasing agent for Lincoln Logistics @ Rockland, located at 625 Corporate Place in Valley Cottage, N.Y.
The exclusive JLL leasing team is led by Senior Managing Director James Panczykowski, Executive Managing Director Dean Brody and Vice President Ignatius Armenia.
Just off Interstate 287 and the Mario Cuomo Bridge – offering easy access to Manhattan and Westchester County in the Empire State, along with Fairfield County in Connecticut and northern New Jersey – the property sits on 23 acres in Executive Park on Route 303 and is set to be completed in the third quarter of this year, according to JLL.
In an area where an average property is more than 45 years old, the Class A Lincoln Logistics @ Rockland will feature a state-of-the-art industrial design, superior loading, wide column spacing, energy-efficient LED lighting, 36-foot clear ceiling heights, 34 loading docks, two drive-in doors, 41 trailer stalls and parking for 123 cars.
According to a statement from LEG President Joel Bergstein, the Rockland County project represents the best opportunity for industrial in the county.
“[A]nd, working with JLL, we are already seeing interest from Fortune 500 companies, third party logistics firms and local businesses looking to expand,” he said. “Rockland County’s business-friendly climate and superior transportation access make it an ideal location for value-oriented tenants requiring access to the New York tri-state market.”
Amid persistent demand for industrial space, Panczykowski described Lincoln Logistics @ Rockland as a “new alternative for tenants.”
In a fourth quarter report, JLL found the Lower Hudson Valley is moving from a build-to-suit and owner-user market to a growing speculative construction market, with record low vacancies (3.4%).
Lincoln Equities @ Rockland County is the first Class A development to come to the area since 2009, according to JLL. – JLL
“As the industrial markets in Northern New Jersey and New York City continue to experience record-breaking demand, Lincoln Logistics @ Rockland offers a new alternative for tenants seeking to service the region from Class A industrial space,” Panczykowski said in a statement. “This type of highly coveted, state-of-the-art space is ideal for a successful distribution hub that caters to the ever-growing demand for fast local deliveries.”
JLL said there are no Class A vacancies in the Lower Hudson Valley, putting “developers in the drivers’ seat,” with tenants on the lookout for an estimated 12 million square feet of space in the region. Despite economic headwinds, demand persists, according to the firm which cited a climb in New York’s industrial occupancy rates to 97.9%.
Retail real estate leaders David Townes and Alana Friedman are now part of the team at JLL Retail, based out of the firm’s Parsippany office. The pair come on board from Cushman & Wakefield.
Townes, managing director, and Friedman, vice president, will collaborate across business lines to bolster and diversify JLL NJ’s brokerage capabilities while also working to expand the firm’s national retail platform, the company said in its March 6 hiring announcement.
“David’s deep understanding of the retail brokerage industry and specific expertise in the New Jersey market make him an exceptional addition to lead the JLL retail team,” Tim Greiner, broker lead for JLL’s NJ Brokerage business, said in a statement.
“We are thrilled to welcome David and Alana to our national retail platform at a critical time when the traditional retail, e-commerce and industrial needs of our clients are converging more than ever before,” added Naveen Jaggi, president, JLL Retail.
Townes
At Cushman & Wakefield, Townes served as senior director of retail brokerage since 2017. Specializing in leasing, he handled representation assignments for landlords and tenants. His experience also includes site selection, letter of intent negotiation, office leasing and full-service commercial transaction management. Urban Edge Properties, Columbia Property Trust and Spear Street Capital are among Townes’ institutional owner clients, while his tenant clients include Planet Fitness, Phenix Salon Suites, Krispy Kreme, Goldfish Swim School and Sport Clips, JLL said.
Friedman
Friedman, an expert in retail landlord representation and tenant brokerage, according to JLL, was director at Cushman & Wakefield. Her clients included national and regional retailers, and she has worked with range of landlords – from independent local owners to large institutional landlords – on projects covering mixed-use developments to ground leases.
“Alana and I are thrilled to be joining JLL, a company that shares our values and commitment to providing exceptional client services,” Townes said. “Their industry-leading platform and culture of excellence aligns perfectly with our own and will elevate our ability to deliver unparalleled value to our clients.”
Before Cushman & Wakefield, Townes was a retail leasing specialist with Ripco Real Estate and also worked at Welco Realty Inc. Friedman, who launched her retail real estate career with the Goldstein Group, previously was a retail broker with RKF in Rutherford.
Mancini Duffy’s North Jersey office at the historic Schoolhouse Plaza at 374 Millburn Ave. in Millburn. – MANCINI DUFFY
National architecture and design firm Mancini Duffy is staying in Millburn.
This week, the New York City-based company announced it signed a seven-year lease extension for its office at 374 Millburn Ave. in the Essex County municipality.
“We’ve seen an opportunity to engage in cutting-edge projects in Northern New Jersey,” Principal and Aviation Practice Director John Anthal, who leads the Millburn office, said in a statement. The space “has its own unique culture and local presence while maintaining the creativity and ingenuity Mancini is synonymous with,” he added. “Building such an energetic and collaborative team over the past several years has been extremely exciting, and that enthusiasm is reflected in our relationships with our clients.”
A nearly 10-year veteran of the firm, Anthal’s Garden State clients have included Bell Works and multiple airlines at Newark Liberty International Airport.
Located in the city’s Business District at the historic Schoolhouse Plaza, Mancini Duffy said its North Jersey regional office caters to core and growing sectors for the firm, including: corporate, aviation, multifamily, hospitality, health care and life sciences. Since it launched at the space in 2017, clients have included Mars Wrigley, Sax LLP and Energy Capital Partners.
Since COVID, Mancini has expanded The Toolbelt so that multiple users, from any location, can explore and manipulate 3D models in real-time and with immediate output.
The Millburn space will be renovated to accommodate growing staff numbers (across its footprint it boasts more than 100 employees), according to the firm, and to add its signature Design Lab. Here, sessions are conducted in a virtual space using Mancini’s patent-pending software, The Toolbelt. The lab will also offer an immersive hub for clients to use the tech in a local, in-person and collaborative environment, according to the firm.
“We are heavily rooted in New Jersey, and as we all know, the various regions of this state take pride in their differences,” said CEO William Mandara Jr., a lifelong Paramus resident. “John Anthal and the Millburn office have a solid reputation after five years of designing award-winning projects. We are excited about the future as we continue to expand both our team and clientele.”
Mandara and President Christian Giordano, who celebrates a decade with the firm this fall, took over ownership of Mancini Duffy in 2014. Since then, and together with their partners, they have invested in an extensive R&D program focused on taking a proactive approach and inventing new technologies (see: The Toolbelt, above) to revolutionize the design process.
“We know the challenges clients face in the New Jersey market,” Giordano said. “Not only does our approach have a track record of changing how clients engage throughout the design process, but the depth of our local knowledge has been vital to our success in the project’s outcome,” said Giordano.
Some of the other companies the firm has worked with in N.J. include, Rutgers University, The Fidelco Group, Valley National Bank, KMPG and Guardian Life Insurance.
The Waterfront Corporate Center in Hoboken. – CUSHMAN & WAKEFIELD
Faropoint is taking up residence at Waterfront Corporate Center I in Hoboken.
Cushman & Wakefield said Feb. 24 it arranged a 18,603-square-foot lease for the data-driven industrial real estate asset manager on the 10th floor of 111 River St. Executive Director David DeMatteis and Senior Director Mina Shehata represented the tenant in the transaction.
At 14 stories and 566,215 square feet, Waterfront Corporate Center I features both office and retail space and is part of an overall three-building, 1.5 million-square-foot complex.
According to DeMatteis, the site was “a perfect fit for Faropoint as they continue to expand their New Jersey footprint.”
The percentage of total 2022 activity represented by Class A leasing as the flight-to-quality amped up, according to Cushman & Wakefield.
Waterfront Corporate Center I features on-site dining options, a fitness center and 180-degree views of the New York City skyline.
“Situated on the Hoboken waterfront, the property provides exceptional Hoboken terminal transit access along with high-performing and efficient workspace,” DeMatteis said of the Class A building.
Veris Residential has taken another step closer toward its goal to become a pure-play multifamily REIT, closing the $97 million sale of the Port Imperial Hotels, two Marriot brand hotels located along the Hudson River in Weekhawken.
Totaling 372 keys, JLL represented Veris in the all-equity sale of EnVue Autograph Collection Port Imperial and Residence Inn Port Imperial to Navika Capital Group LLC. The firm announced the transaction Feb. 23. According to Veris Residential’s Fiscal Year 2022 year-end and fourth quarter results, released that same day, the deal closed Feb. 10.
JLL said the hotels were offered unencumbered by management.
The EnVue Autograph Collection Port Imperial. – JLLThe Residence Inn Port Imperial. – JLL
The 164-key Residence Inn and 208-key Envue hotels opened in 2018 and 2019, respectively. They operate under a singular building complex at the center of the $4 billion mixed-use development nearing completion at Port Imperial, JLL said, which features a collective 15,000 square feet of outdoor space, more than 27,000 square feet of meeting and conference space, a fully equipped fitness center and unobstructed views of Manhattan.
Veris’ completed exit from the hospitality sector was also punctuated by the $117 million sale of The Hyatt Regency Jersey City, which closed in November 2022. According to that firm’s 2022 reporting, the trio of transactions released more than $22 million of net proceeds in aggregate.
“2022 marked another year of significant progress on our path to becoming a pure-play multifamily company,” Veris CEO Mahbod Nia said of the firm’s results. “We continued to successfully execute on non-core asset sales despite substantial market volatility. Our multifamily portfolio continues to outperform, reflecting the high quality of our properties and dedication of our team to delivering excellence. We begin 2023 in a position of strength, as we seek to conclude our transformation and continue creating value for shareholders.”
Making a haus a home
The day before its earnings release, Veris Residential announced another achievement, with the stabilization of its 750-unit luxury apartment tower in downtown Jersey City, Haus25 — three months ahead of schedule, according to the company.
Leasing launched at the 56-story, LEED Silver-certified property last April. Before that, Veris said 150 leases were signed during appointment-only previews.
As of Feb. 22, Haus25 was more than 95% leased and nearly 93% occupied, Veris said.
“The rapid stabilization of Haus25 speaks to our commitment to building innovative spaces that align with the needs of our residents, employees and the communities we serve while generating value for our shareholders,” Nia said in a prepared statement.
According to Veris, it was also able to achieve asking rents at nearly 14% over initial underwriting.
All the while, across the tail-end of 2022, Veris carried on a public back-and-forth with Kushner Cos., following that New York-based company’s attempts to acquire the REIT, which began with a hostile bid in October. Though Veris has maintained it would evaluate any deal that was beneficial to its profitability and shareholders — and that Kushner’s offers undervalue the company — a January update from the target indicated the pursuer was no longer interested in the deal. In response, Kushner Cos. issued a letter to Veris shareholders at the end of the month reaffirming its intent, for now:
“Despite your board’s ongoing intransigence, our objective has not changed—we are prepared to execute a transaction at a price that fairly values your shares. Our fully financed all-cash offer for $18.50 remains outstanding, as does, for now, our willingness to constructively engage with the Board to see if we can go higher. Our patience, however, is not endless, and we are actively considering all other alternatives.”
JLL Capital Markets arranged acquisition financing for a Meadowlands warehouse and distribution property with 109,775 square feet.
The firm worked on behalf of Penwood Real Estate Investment Management LLC, the buyer, through its sixth value-added investment vehicle Penwood Select Industrial Fund VI LP, to secure a three-year, floating rate $19.56 million loan with Tristate Capital Bank.
305 Veterans Blvd. in Carlstadt is a 109,775-square-foot warehouse and distribution center in Bergen County. – JLL
The JLL Capital Markets Debt Advisory team representing the borrower was led by Senior Managing Director Michael Klein, Director Max Custer and Associate Ryan Carroll.
“While the debt market continues to remain volatile, there is still ample liquidity for strong sponsors who own industrial properties in premier markets such as the Meadowlands, provided that the deals feature the right leverage and structure,” Klein said in a statement.
For the fourth quarter of 2022, JLL reported a 2.1% vacancy rate for warehouse and distribution space in the Meadowlands submarket.
“TriState Capital Bank quickly recognized the merits of 305 Veterans Blvd. and put together an attractive financing proposal that will allow Penwood to execute its business plan,” Custer added.
According to JLL, the property was acquired vacant from a departing user. Penwood plans to lease the space, with a team from JLL, comprised of Executive Managing Director Chris Hile, Senior Vice President Michael Palmeri and Vice Chairman David Knee, handling the exclusive listing assignment.
Situated on 3.5 acres, the property features 22-foot clear heights; six dock-high doors and one drive-in door; 78 parking spaces; and a 438 kVA, 350 kW backup generator that can power the entire building. Additionally, 305 Veterans Blvd. benefits from proximity to New York City, access to major thoroughfares (among them the New Jersey Turnpike; Interstate 80; and Routes 3, 17 and 46), and its location near to regional hubs, including Newark airport and The Port of New York and New Jersey. According to JLL, distributors are able to reach 72% of the U.S. population within a 24-hour drive of the property.
“This was an attractive opportunity, to acquire a highly functional asset in the sought-after, high barrier-to-entry, Meadowlands submarket, and we were able to creatively structure the acquisition” Penwood Vice President of Acquisitions Andrew MacDonald said in a statement.
“One Caesar Place is located within one of the premier industrial submarkets in the United States, which is supported by its close proximity to the large population and consumer bases of Northern New Jersey and New York City, offering access to both end users and a dense labor pool,” commented Penwood Asset Manager Remell Chung.
New Jersey’s life sciences sector closed 2022 on a high note, according to a new report from CBRE, posting a vacancy rate at year-end that marked a drop from the prior period.
During the fourth quarter, New Jersey’s vacancy rate for lab/R&D space came in at 7.4%, down from the third quarter’s 8.1%. And CBRE’s Q4 2022 Life Sciences Figures indicate that trend is poised to continue its decline as strong demand and a lack of supply persist within the market.
The firm pegs the amount of available suburban Class A lab/R&D space in the region at 400,000 square feet – with no significant new construction underway. Meanwhile, CBRE said, six major tenants are seeking space.
Largest leases:
Ascendia – 60,000 square feet North Brunswick
PortonUSA – 15,500 square feet Cranbury
Dohler – 11,600 square feet North Brunswick
Nationally, CBRE reported that lab space under construction was up, hitting 40.3 million square feet in Q4 and up about 8% over Q3. Across the 13 largest life sciences markets, N.J. was the only one that had no square footage under construction. With 15.8 million square feet of existing lab space, the state was fourth in those terms.
The average vacancy in the sector nationwide came in at 5.7% for Q4, reflecting an increase from 5.1% in Q3, yet even with the year before and still under pre-2021 levels.
For the full year, the Garden State saw positive net absorption of 97,692 square feet in the sector, according to the report.
CBRE Executive Vice President Thomas Sullivan said New Jersey attracts tenants looking for the most advanced lab space in the region. “Venture capital funding also remained strong throughout the year, reaching $400 million,” he added in a statement.
When it comes to rents, figures in the local metro area were up by $4 to $32 per square foot — under the record-highs seen nationally. CBRE reports that average asking rents rose to $62.16 per square foot in Q4, pegging the increase as likely due to new space coming online in other markets.
Canterly Place, a 300-unit, to-be-built, Class A apartment building located in Livingston, Essex County. – JLL
A multifamily community set to bring 300 units to Livingston in Essex County recently secured construction financing and equity placement.
JLL said Jan. 5 it represented the sponsor, Okner Developers LLC, to secure the 10-year $88.6 million construction loan through Northwestern Mutual, in addition to arranging $38 million in joint venture equity, also with Northwestern Mutual.
Situated on Okner Parkway, Canterly Place will feature 240 market-rate units and 60 affordable residences, according to JLL. One-, two- and three-bedroom layouts will be available, featuring designer kitchens, hardwood-style flooring, oversized windows, walk-in closets, and in-unit full-size washers and dryers. Community amenities will include a hotel-style lobby, a clubroom, a library lounge, a private dining, a game room, a fitness center, coworking space, a golf simulator, a resort-style pool, a paved walking path/fitness trail, a basketball court, a pickleball court and more.
Senior Managing Directors Jon Mikula and Jim Cadranell, Managing Director Matthew Pizzolato and Vice President Michael Lachs led the JLL Capital Markets Team.
“JLL is pleased to announce the successful capitalization of this exceptional project,” Cadranell said in a statement. “Northwestern Mutual recognized the outstanding investment characteristics of this development which outweighed the current disruption in the capital markets. Canterly Place will be a first-class property that will enhance the quality of life of its residents and the surrounding community.”
The property is located just off of Route 10 and less than a mile west of Eisenhower Parkway, offering access to Interstates 280 and 287 as well as Route 24. Livingston is just 10 miles from Manhattan.
With completion set for early 2024, a new luxury apartment development in Millburn secured construction financing.
JLL Capital Markets announced Jan. 4 it arranged a $20 million three-year, floating-rate loan for 397 Millburn Ave. through Provident Bank.
The firm worked on behalf of the borrower, New York-based Eagle Cliff Real Estate Partners and MRY Associates, in the transaction. The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Jon Mikula and Analyst Salvatore Buzzerio.
The project is slated to stand three stories high with 53 units, offering access to downtown Millburn’s dining, entertainment and shopping options. The property is also close to the 13-acre Taylor Park.
397 Millburn Ave. in Millburn is a 53-unit, three-story, luxury apartment development. – JLL
For commuters, the town’s New Jersey Transit rail station is half a mile away, and the property offers access to Interstate 78 in addition to the Garden State Parkway.
“Transit-oriented communities such as Millburn are in need of new, high-end multi-housing options,” Mikula said in a prepared statement. “Eagle Cliff and MRY will be providing an amazing project that will help transform downtown Millburn.”
According to the announcement from JLL, the property will be developed to LEED standards and feature an underbuilding parking garage for residents. Select layouts for the one- and two-bedroom units will offer private outdoor balconies and some with direct external stoop entrances.
Inside, residences will feature stainless steel appliances, quartz countertops, chef-inspired kitchens, in-unit washers and dryers, walk-in closets and 9-foot ceilings. Onsite amenities will include hospitality-inspired common areas, a clubroom with wet bar, a private event room, a fitness center and an outdoor courtyard.
An approximately 430,000-square-foot trophy office building in Parsippany sold recently to Signature Acquisitions of Cranford, as a flight to quality persists in the sector.
JLL Capital Markets announced the sale of 300 Kimball for $88 million Dec. 22, representing the seller – Sovereign Partners LLC – in the transaction.
The team was led by Senior Managing Directors Kevin O’Hearn, Jose Cruz and Jeremy Neuer and analyst Peter Kim.
300 Kimball Drive in Parsippany. – JLL
Situated on 9.29 acres near the intersection of Interstates 80 and 287, within the the four-building, 850,000-square-foot The Center of Morris County office park, the property was most recently renovated in 2013 and is 87% leased.
Anchors at the five-story building include FM Global, Langan Engineering, embecta and Western World Insurance/AIG.
“We’re thrilled to have assisted two long term, highly valued clients of the firm in a single transaction, Sovereign Partners with the successful execution of their value-add business strategy for the asset, and Signature Acquisitions with the strategic purchase of their second building in the office park,” O’Hearn said in a prepared statement. “Additionally, this transaction is reflective of the flight-to-quality trend that we’re seeing in office space – generally the top assets in each submarket continue to perform well, and Parsippany is no different.”
The property, which benefits from strong visibility along I-80, is LEED Silver-certified and a recipient of the BOMA Building of the Year award. Among its features and amenities are: a granite façade, dramatic atrium lobbies, state-of-the-art fitness center with locker rooms and golf simulator, full-service cafeteria with seating, tenant lounge/game room with after-hours grab and go food service, modern conference center, outdoor patio with putting green, electric car charging stations, walking trail and ample covered parking — including a separate gated executive section.
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