EAST HANOVER, NJ-Wells Real Estate Investment Trust II Inc. has acquired Eagle Rock Executive Office Center IV, a class A, 178,000-sf office building located on 15 acres within the 50-acre Eagle Rock Executive Park here. Built in 1990, the newly acquired asset is currently 95% leased to 10 tenants, led by Prudential Insurance and human resources firm Ceridian Corp.

“This is a strong, well-leased building with a mix of creditworthy tenants,” says Jeff Gilder, managing director of acquisitions for the Norcross, GA-based Wells Real Estate Funds, who repped his firm in-house, along with Heather Griner, vice president of acquisitions. “It’s also in an area that has shown strength in rental rates.”

That area referenced is the Morristown submarket in Northern New Jersey, and the acquisition is Wells REIT II’s fifth in the North Jersey region. The seller was Invesco, and the terms, including the sale price, were not released. Industry sources, however, estimate that the asset traded for a number in the $25-30 million range.

“For Wells, the rent roll and below-replacement-cost sale price made this investment an attractive opportunity to expand the company’s footprint in Northern New Jersey,” says Gary Gabriel of Cushman & Wakefield’s Metropolitan Area Capital Markets Group, who brokered the deal with C&W colleagues Andrew Merin, David Bernhaut and Jose Cruz. “The building offers quality space in a high-end park environment.”

Building IV is one of three within the campus, with the other two assets owned by RexCorp Realty and TA Associates. According to Gabriel, the offering was “highly sought-after. It drew multiple bids, with its strong in-place rent rates and limited short-term rollover.”

Invesco had the building in its portfolio for just more than two years. As reported by GlobeSt.com, that firm bought it from partners Investcorp, Crow Holdings and Lincoln Equities in early 2005. The acquisition was part of a four-building portfolio deal, with three of the properties in Northern New Jersey and the fourth in San Francisco. The three New Jersey buildings, totaling approximately one million sf, traded for upwards of $100 million, according to sources. The Investcorp/Crow/Lincoln group, in turn, had acquired it in February 2000.

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?


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.

GlobeSt

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.