Wyndham Leases 18,000-SF Office

The deal was brokered for both Wyndham and property owner Diversified Capital Inc. by Cushman & Wakefield. The lease, effective Feb. 1, 2008, runs for seven years. Further details were not disclosed, but comparable office space along Atlantic Avenue is currently listed with asking prices in the $20-per-sf range.

"When we acquired Citi Center just over three years ago, we embarked on a substantial renovation project to attract and retain tenants," says SVP Aron Gottlieb of the Lakewood-based Diversified Capital, which bought the building from Prudential Mortgage Capital Co. for an undisclosed price. "With this latest agreement, it is more than 99% leased, up from just below 50% when we acquired the property."

Totaling 135,000 sf, the asset dates to 1920, and prior to the most recent upgrade was last substantially renovated in 1981. Besides Wyndham, its tenants include the Bank of America, the local Board of Education, and various state government agencies including the New Jersey Department of Gaming.

Separately, Diversified is looking for additional commercial acquisitions, both in Atlantic City and elsewhere, Gottlieb says. "Our strategy is to acquire assets in underperforming or emerging markets," he tells GlobeSt.com. "We seek properties where we can immediately add value through renovation and repositioning."

Along those lines, as reported by GlobeSt.com, Diversified Capital last month acquired the vacant, 103,000-sf former Kessler Rehabilitation Institute hospital in East Orange for $4.5 million. The six-story asset is likely due for conversion to office or residences, or both.