MORRIS TOWNSHIP, NJ–In the continuing shakeout of ajoint-venture agreement between Keystone PropertyGroup of Pennsylvania and Edison-based Mack-CaliRealty Corp., Keystone has closed on purchase of the 412Mt Kemble Ave. office complex here, paying $45.4 million.

|

Last week, the companies closed on Keystone's acquisition ofthree other office properties from Mack-Cali's New Jerseyportfolio. (see story here.)

|

The trades are part of a series of moves allowing Keystone toexpand and strengthen its office portfolio, whileMack-Cali continues shifting its primary focus tomulti-family property. (see story on the joint venture agreementhere).

|

The 412 Mt. Kemble Ave. property, set at the center of MorrisCounty's corporate corridor, is comprised of three, three-storybuildings with a total of 475,100 square feet, including a largeblock of headquarters-quality space. The buildings are connected bytwo full-height atriums.

|

Keystone says it will invest $5.9 million in the property toimprove building systems and infrastructure, amenities, and overall“curb appeal.”

|

“412 Mt. Kemble Avenue fits ideally with our mission to investthoughtfully and strategically in well-located assets that can bereinvigorated through reinvestment,” said BillGlazer, Keystone's president. While New Jersey's officemarket generally continues to struggle with high vacancy, Glazerpointed to 412 Mt. Kemble as having a “high upside, with theopportunity to lease in the highly desirable corporate corridor inMorris County.”

|

The properties that Keystone acquired from the Mack-Caliportfolio earlier this month include 30 Knightsbridge Rd. inPiscataway, 470 Chestnut Ridge Rd. in Woodcliff Lake, and 530Chestnut Ridge Rd. in Woodcliff Lake.

|

Through its innovative partnership deal with Keystone, Mack-Caliis to receive a share of value created over certain thresholds.Mack-Cali is to handle leasing of the portfolio and share inmanagement fees. “We are confident that, through an aggressiveleasing initiative, the partnership can effectively capitalize onthis property's prime market position,” said Mitchell E.Hersh, the REIT's president and CEO.

|

Hersh reiterated after the latest closing that the joint-venturearrangement allows his company to” continue to invest in morestrategic growth opportunities,” employing its Roseland division todevelop multi-family and mixed-use projects – in concert withKeystone or other partners and on its own.

|

The Morris Township office offers an array of tenant amenities,including a fitness center, café, executive parking garage, anddual power feeds.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.