FLORHAM PARK, NJ-It’s worked before–twice–so why not give it another try, especially when the players are heavy hitters like developer Gale & Wentworth, based in Florham Park, NJ, and Morgan Stanley Dean Witter? The dynamic duo have launched a third equity fund with the aim of acquiring and developing as much as $250 million in prime office properties. The focus of the property search will be the two coasts.

“Our relationship with Morgan Stanley has been a good one, and we continue to maintain the resources and strategies that have worked for us in our two earlier ventures,” according to Mark Yeager, president of Gale & Wentworth’s commercial group.

The first step is an investment of $75 million in MSGW Real Estate Fund III, with the money being used to begin the process of picking up assets, targeting New Jersey, New York and Boston on the East Coast, and California on the West, according to Yeager. In New Jersey, four class A office buildings are in the fold in Montvale and Morristown, and an announcement on two other properties is said to be near. The newly acquired properties include a 200,000-sf portfolio of three properties in Montvale, worth more than $26 million, and 131 Madison Avenue in Morristown. The buildings’ occupants include Mercedes Benz, International Paper and Volvo North America.

Indeed, based on what’s already happened, Yeager predicts that those initial acquisitions will be completed as soon as the end of this year, at which time a fourth such venture could be launched.

Venture I between the two partners came four years ago with a $50-million pot that was used to leverage a group of New Jersey properties with a total value of $150 million. Three years ago came the launch of MSGW II, which accumulated $200 million in assets on both coasts.

Gale & Wentworth has developed, owns or manages a commercial real estate portfolio of more than 40 million sf.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?


© 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.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.