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MORRIS TWP., NJ-Zirinsky Associates, based in New York City, has long had a major presence in the Princeton market with its College Park holdings. The company is expanding its reach in the Morris County market, now picking up its third asset here with the acquisition of the 139,000-sf class A office building at 465 South St., just outside of Morristown. The actual buyer was Southgate Center Four Associates LLC, an entity controlled by the Zirinsky family.

Multiple rounds of bidding yielded the sale, in which the Hartford-based Cornerstone Real Estate Advisors moved the property on behalf of an unnamed client. The deal was brokered by Cushman & Wakefield’s Metropolitan Area Capital Markets Group’s Andrew Merin, Jose Cruz, David Bernhaut and Gary Gabriel.

The acquisition offers up a value-add for the new owner. While seven tenants are still in the building, 36% of its space, or about 50,000 sf, is currently vacant. That vacancy is the result of the gradual pull-out of a major tenant, shipping giant Maersk.

“This property presents a compelling opportunity to add value by retenanting the space with small to mid-size firms looking for an institutional-quality work environment,” says Cruz. “The building is attractive in this underserved class A tenant sector, which remains consistently active in the local submarket.”

The offering drew more than a dozen bids, according to Merin. “It was highly sought after and ultimately was a terrific strategic play for Zirinsky,” he says. The sale price was not released, but industry sources put the number in the $20-million range.

The three-story brick-clad building sits on 9.7 acres within Southgate Corporate Center. Its features include a central full-height glass atrium lobby with a spiral staircase that separates the building into two wings.

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