The acquisition involves a half dozen class A office properties and an exhibition center. The Charlotte, NC-based Allegiance bought the assets with Rockpoint Group as their institutional equity partner, with an acquisition and redevelopment loan from iStar Financial arranged by Ackman-Ziff. The sale price was $72 million and company officials says it's their largest acquisition to date.

"This acquisition allows us to enter one of the toughest-barrier-to-entry markets in the country in a critical mass strategy," Christopher Smith, Allegiance's CEO, tells GlobeSt.com. "These are outstanding assets, and this was a complex transaction."

Most of the pick-up is located in this Central Jersey community, along the I-287 corridor. Four of the assets make up what's referred to as the Atrium Drive portfolio, including 300 Atrium Dr., a 147,474-sf, four-story building; 400 Atrium, 354,670 sf and five stories; 500 Atrium, 169,212 sf and four stories; and 700 Atrium, 181,069 sf and four stories. The latter is 100% occupied by pharmaceutical giant Merck & Co.

Also part of the local package is 379/399 Campus Dr. here, a 199,757-sf complex, as well as the Garden State Exhibition Center, an 82,000-sf trade show hall. The acquisition also includes 25/35 Airport Rd., a 96,207-sf class A office complex to the north in Hanover Township.

"This portfolio of assets provides us with a significant presence in some of New Jersey's prime office markets," says Scott Sambade, director of acquisitions for Allegiance. "We have more than $30 million in capital that will be reinvested into these assets for improvements. This capital improvement program and our ability to execute below-market leases provide a very compelling leasing opportunity for tenants."

"This transaction reflects our ability to stabilize and create enough leasing momentum on this portfolio to exit at a fair value," Fred Arena, Archon's regional director of commercial real estate, tells GlobeSt.com. "We can deploy our capital elsewhere."

"We remain pleased with the interest the capital markets have shown for our assets as we create value leading towards disposition," adds Sam Morreale, the firm's director of development and leasing.

Related to the acquisition, Allegiance will also open a local office at 500 Atrium Dr. Grubb & Ellis, which had the property management assignment when Archon owned the buildings, will continue in that role, according to Sambade.