HOPEWELL, NJ-Two separate Cushman & Wakefield entities played roles in American Real Estate Partners' recent acquisition of a three-building complex at the Merrill Lynch campus here for $90.8 million.

In addition to representing the seller, C&W arranged $60 million in financing for American in its purchase of 1100, 1150 and 1200 Merrill Lynch Drive, which have a total of 380,000 square feet. The sale price equates to $239 per square foot, of which $158 per square foot was financed, according to C&W.

Merrill Lynch Pierce Fenner & Smith occupies all three of the buildings on a long-term basis. The buildings are part of the firm's 12-building, 1.8 million-square-foot campus.

The seller of the three buildings was a partnership that included Fortress Investment Group, Sansome Pacific Properties, Normandy Real Estate Partners and Skyline Pacific Properties.

C&W's Metropolitan Capital Markets Group team of Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer and Grace Braverman represented the seller.  Separately, C&W's Equity, Debt & Structured Finance team of Mark Ehlinger and John Alascio arranged the acquisition financing. 

C&W's leasing brokers Paul Giannone, Kevin Carton and Todd Elfand assisted in the sale.

Merrill Lynch built the campus in 2001 for its Global Wealth and Investment Management division. Bank of America acquired Merrill Lynch in 2008 and instituted a national program of long-term sale leasebacks, resulting in the subsequent $365 million sale of the entire campus to the four partners in 2012.

That transaction arranged by C&W stands as the largest-ever single-asset suburban office transaction in the state.

“This is among the highest quality office campuses in New Jersey, constructed to the most stringent corporate standards, with long-term occupancy by a very strong credit tenant,” said Bernhaut. “The buyer is taking advantage of a very safe long-term opportunity in the greater Princeton market, one of the best-performing markets in the state.”

The market, heavily populated with national and global corporations, has a current vacancy rate of only 11.1%, he said. Class A asking rents average $32.58 per square foot.

The complex that was traded includes a 20,000-square-foot data center, state-of-the-art technology, and raised flooring throughout. The campus includes multiple cafeterias, a fitness center with full-court basketball and multiple parking decks.

C&W's Metropolitan Area Capital Markets Group, specializing in investment sales of office, industrial, multifamily and retail properties throughout New Jersey; New York; Fairfield County, CT; and Pennsylvania, is based in East Rutherford. 

The firm's Equity, Debt & Structured Finance Group, which arranges financing throughout the capital stack for investment property owners and developers in North America and collaborates with C&W teams globally, is based in New York City.