The seller was not identified; however, Seven Giralda Farms is currently listed on the website of the Gale Co., and industry sources confirm that the seller was indeed a partnership of Gale and Morgan Stanley. Gale could not be reached for comment.

The asset was originally built for and then vacated by Global Crossing. Just last month, as reported by GlobeSt.com, Gale announced that it had filled the building with four new tenants, led by Maersk's 115,000 sf. The other recent signees are Wyeth, Atlantic Mutual and Accordia Northeast Inc., a subsidiary of Wells Fargo.

The deal follows two other Reckson pick-ups within Giralda Farms recently. This past July, the Melville, NY-based REIT bought the then-vacant, 141,000-sf Three Giralda Farms and within weeks brought in Daiichi Pharmaceutical Corp. with a full-building, long-term lease. The sale price was not disclosed.

And just more than a week ago, Reckson announced that it had acquired One Giralda Farms, a 150,000-sf class A building, for $24.3 million or about $162 per sf. As reported by GlobeSt.com at the time, the seller was Schering-Plough, which will stay in the building temporarily under a short-term lease until it's ready to move the housed operations to a new campus in Summit. Reckson also unveiled a $10-million repositioning of One Giralda Farms for multi-tenant use.

The latest acquisition brings Reckson's portfolio in New Jersey to more than three million sf. "We now own all of the non-owner occupied building in the Giralda Farms Corporate Campus," says Todd Rechler, corporate SVP and managing director of Reckson's New Jersey operations.

He adds that Reckson now owns "1.3 million sf in the Route 24 corridor." Other holdings in the submarket include Reckson Office Center, a three-building, 565,000-sf complex in Short Hills, where the company maintains its regional offices.

The company also owns 154 acres of undeveloped land within Giralda Farms, with development rights of about 1.1 million sf. Almost 440,000 sf of that is fully designed and approved for construction, according to Rechler.

The latest acquisition is expected to generate a GAAP net-operating income yield of 8.5%, reports the SVP. Reckson expects to generate cash NOI yields of up to 9% based on the burn-off of scheduled rent abatements.

Instant Insights /

Reckson Buys 203,000-SF Office Building for $54M

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