"The building is without comparables within Morristown's CBD or in surrounding towns," Gabriel says, noting that the 10-story 1776 On the Green sits on nearly an acre of city-owned land in the heart of Downtown. "The building is unique because of its small and highly divisible floor plates, its interior finishes and the abundant parking considering its CBD location.
"Because further development or redevelopment is limited by historic structures, dense residential uses, parks and public spaces, this offering was a unique opportunity to acquire a niche asset on a competition-constrained location," Gabriel continues. He adds that his group received "more than 15 bids and conducted multiple rounds of bidding for the property.
"The Morristown submarket is distinguished in the region by its compact business district, its amenities and its mass transit access," he says. "Most office buildings in the area were developed for large tenants and do not divide well for smaller tenants. 1776 On the Green is the exception in that it is very well suited for small- to mid-size users."
Built in 1973, the asset was originally occupied by AT&T. It is currently 99% leased, with a diverse tenant roster that includes the brokerage firm A.G. Edwards; Panalpina Inc., a global logistics company; and pharmaceutical giant Novartis. The sale price was not disclosed, but industry sources say the building likely traded for a number in excess of $200 per sf.
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