3 AAA Drive in Hamilton — Courtesy: Newmark Knight Frank
By Joshua Burd
Mack-Cali Realty Corp. has sold a six-building office portfolio in Hamilton to Denholtz Associates, in a deal arranged by brokers with Newmark Knight Frank.
Known as the Horizon Center, the portfolio spans 236,284 square feet of existing space and includes two development sites. The 86 percent leased portfolio includes:
- 2 South Gold Drive
- 100 Horizon Drive
- 200 Horizon Drive
- 300 Horizon Drive
- 500 Horizon Drive
- 3 AAA Drive
Terms were not disclosed. NKF Executive Managing Director Steven Schultz and Managing Director Tony Georgiev led the capital markets team that completed the transaction.
“We’re pleased to have represented in this complex portfolio trade, part of Mack-Cali’s plan to dispose non-core assets, and also to have traded the premier Horizon portfolio to Denholtz, as it aligns with their goals and is an excellent fit for their company,” Schultz said. “Horizon is a rare opportunity in one of a few core suburban real estate submarkets in all of New Jersey with institutional-quality product by prominent owners like Mack-Cali.”
Mack-Cali had owned the buildings since 2007. In marketing the portfolio last year, NKF highlighted the portfolio’s ability to offer space for high-tech and flex uses and quick access to the New Jersey Turnpike, interstates 295 and 195 and routes 1 and 130.
“Since our founding 65 years ago, our team has aggressively searched to deploy capital in markets and property types that provide our firm with ideal value-add opportunities,” said Stephen Cassidy, president of Denholtz Associates, which is based in Matawan. “Our acquisition of the Horizon Center exemplifies that commitment as we recognize the strong growth trajectory of the Mercer County market and the unique prospects presented by this property.
“With a limited supply of quality office buildings in the area, the acquisition of this property will enable us to apply our in-house capabilities to bring the portfolio to full occupancy and provide strong returns to our investors.”
The two additional land sites are at 5 and 6 AAA Drive, with NKF touting more than 12 acres of combined development potential. The brokerage team has previously said the sites were zoned for research and development, allowing for uses such as office, lab, medical, industrial, distribution and warehousing.
NKF Executive Managing Director Steve Tolkach and Director Robert Loderstedt, who were also assigned to the sale, have been hired by Denholtz to serve as the portfolio’s leasing team.
“This market has become an increasingly desirable area for corporate users seeking to tap into the skilled employment base, and we look forward to working with Denholtz to leverage the properties’ versatile floor plates, convenient accessibility by major thoroughfares, and wealth of amenities,” Tolkach said. “Most of all, we’re very pleased as a company to have collaborated in helping clients on both sides of the transaction fulfill their business goals.”
Mack-Cali also announced Tuesday that it was expanding an agreement with Uber to provide subsidized rides to commuters at its suburban New Jersey properties. The real estate investment trust will now offer the service at 51, 101, 103 and 150 John F. Kennedy Pkwy., building on previously announced locations within its Metropark portfolio in Woodbridge and Edison.
“We recognize that convenience is a key factor when it comes to planning and meeting the transportation needs of our tenants,” Mack-Cali CEO Michael DeMarco said. “Implementing an on-demand transportation service such as Uber has been very well received by our tenants in Metropark, and we’re excited to introduce the pilot program in Short Hills.”
