NJ office complex on the block

Real Estate Alert, April 21, 2004

A partnership is marketing a Northern New Jersey office complex that could attract bids of $205 a square foot.

The 637,000-square-foot Continental Plaza is located at 401-403 Hackensack Avenue in Hackensack. It's owned by a partnership between Israeli firm Brack Capital Real Estate and New York-based Stellar Capital Management. At the expected price of $130 million, the buyer's initial annual yield would be about 7.7%.

The three-building property is 87% occupied, although pending leases should bring the occupancy level to 92% by the time a sale is completed. Asking rents range from $25 to $27/sf, plus electricity costs. A small amount of space is available for sublease. Tenants include Fujitsu Systems of America and U.S. Postal Service. There is about 14,000 sf of retail/restaurant space.

Continental Plaza has a garage with parking for 1,500 cars and additional surface parking. Two of the buildings are connected by an underground concourse.

Brack and Stellar purchased Continental Plaza from Berwind Properly for $78.4 million, or $123/sf, in 2000. Berwind bought the property in 1996 from RREEF USA Fund 1 for $61 million, or $96/sf. The buildings were constructed from 1970 to 1976. They are located off Route 4, which feeds onto the George Washington Bridge, one of the main connections between New York and New Jersey.

CB Richard Ellis is handling marketing via its offices in New York and Stamford, Conn.