Normandy paid seller US Realty Advisors $33.7 million for the building or about $242 per sf. CB Richard Ellis' Tri-State Investment Team, headed by Jeffrey R. Dunne, represented the seller.

Normandy's latest acquisition is 100% net leased to a single tenant, Mellon HR Solutions, a subsidiary of Mellon Financial Corp., through 2012. But Mellon HR Solutions was recently sold to Affiliated Computer Services for $405 million and the firm will be vacating the building over the next 18 months or so. Mellon Financial will remain as guarantor of the lease, while giving the new owner a value-added play.

"The building's location, as well as the stability of Mellon's investment grade credit, presents us with a tremendous opportunity to reposition the asset," Welsh says. "It will also allow us to capitalize on an improving Fort Lee submarket."

Built in the early 1980s, 2100 North Central Rd. is made up of seven floors of office space on top of six levels of parking. The new owners expect to capitalize as well on the building's proximity to major roads and to Manhattan, according to Welsh.

The pick-up is the latest in a succession of acquisitions that has added nearly $700 million of assets to Normandy's portfolio in the past 12 months, boosting its holdings past the $1-billion and three-million-sf marks. Within the past year, the firm has completed such deals as the $109-million acquisition of the 640,000-sf Continental Plaza in Hackensack. Normandy has also co-invested in the group that bought the Stanhope Hotel in Manhattan with an eye on turning that asset into a residential condo.

Instant Insights /

Normandy Buys Mellon Building for $34M

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