Dean Zang and Mark Taylor of Marcus & Millichap Real Estate Investment Brokerage Co. in Philadelphia represented the seller, who acquired the property at a 7.7% cap rate – an unusually strong rate for the market, according to Zang.
Zang tells GlobeSt.com that there was high demand for the property, which was a contributing factor. "A typical or similar property could be expected to trade at 7% to 7.2%. But this building is very well located and widely known in the area. You could call it a trophy building for private investors."
The seller is assuming the buyer's high interest debt, he adds. "As a result it is netting the seller higher proceeds than originally expected since they don't have to defease the loan."
The two-story, 35,498-sf building is fully occupied by a few restaurants, a campus bookstore, the City of Newark, Simon Eye Associates and some small retailers.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
