100 Schultz Drive in Red Bank — Courtesy: Cushman & Wakefield
By Joshua Burd
Mack-Cali Realty Corp. has acquired three office buildings in Red Bank for $26 million while selling a property in Bridgewater, in separate transactions arranged by Cushman & Wakefield.
The brokerage firm announced the deals Monday, as Mack-Cali continues to bolster its presence in certain submarkets while selling properties in many others. In Red Bank, the company acquired the 17-acre multitenant campus from Alfieri Co. Inc., with the properties spanning 280,500 square feet at 100 Schultz Road, 200 Schultz Road and 230 Half Mile Road.
In a news release, C&W said the current occupancy “presented an opportunity with strong upside potential.” Andrew Merin, who headed the transaction with David Bernhaut, Gary Gabriel, Brian Whitmer and Andrew MacDonald, said the property historically has attracted credit tenants due to its easy accessibility and the region’s strong labor pool.
“Mack-Cali has been focusing its investment activity in certain geographic areas, and these buildings sit adjacent to another, highly successful asset in the firm’s regional portfolio,” Merin said. “Mack-Cali plans to incorporate them as part of one cohesive campus with shared amenities, which will enhance the potential of this already great value-add play.”
The properties sit across Newman Springs Road from Mack-Cali’s three-building campus known as One River Centre. Located immediately off Exit 109 of the Garden State Parkway, the campus offers a full-service cafeteria and fitness center and a well-landscaped central courtyard with outdoor seating.
In Bridgewater, Mack-Cali sold a 200,000-square-foot property at 440 Route 22 East to American Equity Partners, the news release said. The same C&W Metropolitan Area Capital Markets Group team orchestrated the sale, with support from Andrew Schwartz and Frank DiTommaso.
“The purchaser recognized the opportunity to acquire a historically well-leased asset within an office market that has been particularly active as of recent, and plans to provide cosmetic and amenity improvements to further enhance its appeal,” Gabriel said.
Also known as One Grande Commons, 440 Route 22 East is the third property the Cushman & Wakefield team closed with American Equity Partners this year. The building offers access to interstates 287 and 78, along with Routes 202/206.
“Tenants at 440 Rt. 22 East have abundant retail, dining and hospitality options nearby, with more on the way,” DiTommaso said. “Bridgewater has made great strides in drawing new mixed-used and residential projects, and as a result, the town continues to attract employers from all over the state, helping add to Bridgewater’s talented and diverse employment base.”
The three-story building is home to pharmaceutical, engineering and law firms, among others, offering an on-site café, UPS and FedEx services, C&W said.
“Previous ownership has done an excellent job maintaining a history of high occupancy at the property, and 440 Rt. 22 East will certainly compliment American Equity Partners’ existing portfolio,” Schwartz said. “We anticipate that the strength of the I-78 Corridor and Bridgewater markets will continue and that the property will remain competitively positioned.”