8 Campus Drive in Parsippany — Courtesy: JLL
By Joshua Burd
An investment group has secured nearly $148 million in financing for its recent purchase of 10 office buildings in Parsippany and Madison, in a transaction arranged by JLL.
Brokers with JLL’s New Jersey capital markets team represented the borrower, a joint venture of Onyx Equities, Taconic Capital Partners, Axonic Capital and Machine Investment Group, to secure the three-year, floating-rate loan for the 1.5 million-square-foot portfolio. Ares Management Corp. is providing the $147.72 million loan through funds it manages, supporting the group’s roughly $160 million purchase from Mack-Cali Realty Corp.
The JLL team representing the borrower included Steven Klein, Christopher Peck, Michael Klein, Jose Cruz and Alex Staikos.
“This is a best-in-class sponsorship team that is unrivaled in its ability to maximize value in suburban office assets,” Steven Klein said. “Under this ownership, the portfolio is extremely well positioned to benefit from tenants seeking high-quality office space in a strong location.”
The portfolio, which is 84 percent leased, includes:
- 1, 3, 5 and 7 Sylvan Way in Parsippany
- 4, 6 and 8 Campus Drive in Parsippany
- 2 Dryden Way in Parsippany
- 2 Hilton Court in Parsippany
- 1 Giralda Farms in Madison
The transaction comes as part of a previously announced move by Mack-Cali, the Jersey City-based real estate investment trust, to sell its remaining suburban office buildings. The company announced late last year that it would sell more than 2 million square feet in Parsippany and Madison to an Onyx-led investment group, in a deal that is now closing in two phases.
In announcing the purchase last week, the buyers said they would make a series of capital improvements across the portfolio. The investments are primed to help them capture tenants already in the suburbs as well as firms that are relocating or expanding from New York City due to COVID-19 concerns.