1100-1200 American Blvd. in Hopewell — Courtesy: American Real Estate Partners
By Joshua Burd
An investment group has reaped $95 million from the sale of a well-known, three-building office campus in Hopewell that is fully occupied by Merrill Lynch.
The joint venture, American Real Estate Partners and Independencia Asset Management, on Wednesday announced the sale of the 380,417-square-foot complex at 1100-1200 American Blvd. An undisclosed buyer purchased the property, which was built in 2000 as a campus for the financial services firm and what would become its parent company, Bank of America.
AREP will continue to lease and manage the property.
“We were particularly impressed with everyone’s commitment to work through this transaction in one of the most complicated environments any of us have experienced,” said Brian Katz, co-founder and president of AREP. “It was certainly a deal worth doing and the fact we got it done, particularly in this climate, is testament to the working relationship of all parties involved. We are proud of our team for executing the transaction, extremely pleased with the outcome for our investors, and excited to work in partnership with the new ownership going forward.”
Cushman & Wakefield’s East Rutherford-based capital markets team brokered the sale.
“The property is an exceptional asset in the fifth-largest market in the country and represented a strong acquisition for the buyer,” said David W. Bernhaut, an executive vice chairman with C&W. “The deal offered positive cash flow from an investment-grade tenant for several years, desirable real estate centrally located between New York City and Philadelphia, and an opportunity to ensure management continuity by leveraging AREP’s operating platform.
“From our perspective, what made this deal work was the quality of the real estate and its tenancy as well as the manner in which AREP maintained the asset over their ownership tenure.”
The property, which is just north of Interstate 295, sits within the Princeton and Route 1 Corridor submarket. AREP and C&W touted the highway access, its proximity to major universities, a highly educated workforce and surrounding amenities.
“This transaction not only represented a win-win for all parties but further evidenced the strength and attractiveness of the New Jersey market even in challenging environments,” Bernhaut said.
