The deal was arranged by Cushman & Wakefield's MetropolitanArea Capital Markets Group, specifically Gary Gabriel, AndrewMerin, David Bernhaut and Jose Cruz. The sale price was notdisclosed; industry sources put the number in the $30-millionrange. Ivy and Urdang had acquired the building and its 13.5-acresite in early 2005 from Lincoln Property Co. and Archon for areported $25million. Ivy and Urdang subsequently picked up a$17.8-million first mortgage from Aetna to finish off thatacquisition.

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"It is a very well-located asset with a predictable return andlimited leasing exposure," says Gabriel, noting that the 96%-leasedbuilding is at the confluence of the New Jersey Turnpike, GardenState Parkway, Routes 1, 9 and 440, and I-287. "The offering drewsignificant interest and more than a dozen offers.

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"Buyer selection is critically important in this market,"Gabriel says. "Silverman is an exceptionally well-capitalizedprivate investor that had the ability and willingness to closeall-cash, but ultimately agreed to assume the existing loan for ashort period of time. That allowed Ivy to avoid considerabledefeasance costs. Ivy and Urdang were able to realize a solidreturn in what has been a challenging market.

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"Raritan Plaza III has enjoyed significant leasing momentumrecently, which continued throughout the marketing process,"Gabriel says. "This was a major appeal to potential investors."

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The 27-year-old building, which recently underwent a renovation,currently has a roster of 27 tenants. Just prior to the sale,wholesale insurance broker AmWINS Group Inc. signed a lease for13,312 sf in a regional office expansion and relocation fromanother building within Raritan Center. Robert Dinner of C&W'sEdison office represented Ivy, and David Zimmel of locally-basedZimmel Associates represented AmWINS.

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Part of AmWINS new space on the top floor was being marketed forsublease by Computershare, and as part of the deal, Dinnerorchestrated a lease termination with the sublessor and theirbroker, Richard Madison of Newmark Knight Frank. AmWINS'transaction was then negotiated as a direct lease.

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"Ultimately, we captured the space and were able to offer alonger lease term to AmWINS," says Dinner. "This transactionbrought in another quality tenant and helped stabilize the asset onlong-term basis."

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Terms of the AmWINS lease were not disclosed. Currentavailabilities in the building amounting to about 7,500 sf arelisted with an asking price of $24.50 per sf for five-year and10-year terms.

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