Vision Properties, a New Jersey-based developer and wholly owned subsidiary of Arena Capital Group, has acquired the 15-story Metropolitan Center office tower in East Rutherford, NJ, from a non-traded REIT affiliated with KBS Realty Advisors, for $108.7 million or $256.77 per square foot.
Known locally as Met Center, the 423,343-square-foot, 15-story, LEED Gold-certified office building is located at One Meadowlands Plaza at the intersection of Route 3 and the New Jersey Turnpike adjacent to MetLife Stadium and the American Dream development. Built in 1986 and renovated in 2004, the building won a 2010 TOBY award for New Jersey and a 2011 TOBY for the Middle Atlantic Region. Major office tenants include AEGIS, Hudson News and Michael Kors.
Jeffrey Dunne, Kevin Welsh, Brian Schulz and Frank Maresca of CBRE Group Inc.’s Institutional Properties team marketed the property on behalf of the seller, KBS REIT II.
According to CBRE's Dunne, the buyer was attracted to Met Center's crossroads location and proximity to Manhattan, as well as the diversity and quality of its tenant roster. Dunne said the opportunity to raise rents in the future was also attractive to the buyer as office rents in the area have spiked by 10% since 2012, and many of the tenants in Met Center signed leases in 2009 and 2010 when rents were lower.
"Bottom line, we expect new ownership to perform well with this trophy property," said Dunne.
Several other high profile properties in the area are currently on the market as sellers seek to cash in on investor interest in the region. Among those being shopped by CBRE are 400 Plaza Drive, a 258,459-square-foot office building in Secaucus, NJ; 45 Waterview Boulevard, a 106,680-square-foot, single tenant, net lease office building in Parsippany, NJ; 2 Giralda Farms, a 146,366-square-foot office building in Madison, NJ; the Technology Centre of New Jersey, a 336,000-square-foot life sciences and technology campus in North Brunswick, NJ; and The Shoppes at North Brunswick, a lifestyle center in North Brunswick, NJ.
Please see CoStar COMPS # 3056926 for more information on this transaction.