1100-1200 American Blvd., Hopewell Township, NJ

HOPEWELL TOWNSHIP, NJ—Three Class A office buildings totaling more than 380,000 square feet here have changed hands in a deal valued at $95 million.

American Real Estate Partners of Herndon, VA and Miami-based Independencia Asset Management sold the 1100-1200 American Blvd. office complex to an undisclosed buyer.

The property was originally built in 2000 as part of the Merrill Lynch corporate campus and consists of three office buildings totaling 380,417 square feet.

AREP acquired the property in 2013 as part of its portfolio strategy to moderate risk within its value-add strategy. Under the terms of the agreement, AREP will continue to lease and manage the property. The asset is currently 100% leased to Merrill Lynch, which was acquired by Bank of America in 2008.

"The property is an exceptional asset in the fifth largest market in the country and represented a strong acquisition for the buyer," says David W. Bernhaut, executive vice chairman of Cushman and Wakefield's Capital Markets Group, the exclusive agent for the transaction.

He adds that the deal offers positive cash flow from an investment grade tenant for several years, desirable real estate centrally located between New York City and Philadelphia, and an opportunity to ensure management continuity by leveraging AREP's operating platform.

Bernhaut adds, "This transaction not only represented a win-win for all parties but further evidenced the strength and attractiveness of the New Jersey market even in challenging environments."

The property is located in the Princeton/Route 1 Corridor submarket that boasts more than 191 million square feet of investor-owned space across 2,035 buildings, which puts the area among the top-five office markets in the United States. The Princeton/Route 1 Corridor has been one of New Jersey's top submarkets for nearly two decades. Since 2004, the market has experienced a 20% increase in Class-A asking rents.

Widely known for its diverse tenant base and corporate headquarters presence, New Jersey is home to Novo Nordisk, Bristol-Myers Squibb, Bank of America Merrill Lynch, Johnson & Johnson, Dow Jones, NRG Energy, PNC Bank, AAA, BlackRock, and other Fortune 1000 companies.

AREP is an institutional fund manager and operating partner focused on office and mixed-use repositioning and development. Since its founding in 2003, the company has deployed more than $4 billion across targeted geographies and acquired more than 17 million square feet of Class-A real estate

Since incorporating in US in 2004, IAM has invested in more than 18 million square feet of core-plus and value-add office, retail and industrial assets in 19 states with 10 different local operating partners. To date, the firm has invested in more than $3 billion worth of real estate assets through 50 different SPEs. IAM's current portfolio consists of approximately $2.1 billion of assets under management through 32 different SPEs.

Instant Insights /

Merrill Lynch-Occupied Complex in Hopewell Township Trades for $95M

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