Hana Pays $305M for NJ Office Campus

Hana Asset Management, a subsidiary of Hana Financial Group, one of the largest bank holding companies in South Korea, has purchased a Class A office project in Plainsboro, New Jersey for $305 million, making it the largest single-asset sale in New Jersey to date in 2016. The 762,000 square foot complex was sold by a partnership between Ivy Equities, LCOR Inc. and Intercontinental Real Estate Corp. in a deal brokered by Cushman & Wakefield; C&W also secured financing while Goulston & Storrs advised Hana in the transaction. The acquisition is the latest in Hana's program to acquire core office properties in the metropolitan areas of major U.S. cities, such as New York, Washington DC, Chicago, Houston and Seattle.

"The superior investment-grade tenant and durable in-place cash flow with contractual rent steps at 800 Scudders Mill enabled us to source this noteworthy partnership as the purchasing entity," said Andrew Merin of Cushman & Wakefield's Metropolitan Area Capital Markets Group. "The result – a major offshore investment in New Jersey - is a big win for the state. The transaction came with a number of challenges, including the complexity of multiple partners on both sides of the sale."

"This was indeed a complex transaction involving a foreign entity trying to understand structural considerations for financing in the U.S.," John Alascio, a managing director with C&W, said in a prepared statement. "Future funding components are always complex in terms of logistics and obtaining lender approval. It can often be easier with single-tenant financing, which this is, but in this instance, given the nature of future funding and the earn-out of space to the tenant, it was particularly challenging. Overall, we delivered the best deal in the marketplace, working around the structural concerns of both the buyer and seller."

The Class A property features nine interconnected buildings on 59 acres in the heart of the Princeton sub market, and was originally developed in 1985 for Merrill Lynch. Novo Nordisk, headquartered at the office park, currently occupies 498,000 square feet on a net lease basis with expansion rights. The pharmaceutical company has occupied the campus since 2013, when the property underwent a full redevelopment.

For more news and information visit Blumberg Partners.

Northstar CP Buys Office Complex

Denver-based Northstar Commercial Partners announced earlier this week that it had acquired an 199,418 square-foot office complex in Lakewood, Colorado for $4 million, or $20 per square foot. Northstar purchased the two-building complex from Hub Properties Trust c/o Reit Management & Research out of Ohio. Northstar is calling it "the largest block of contiguous office space in a stand-alone building in the entire metro Denver area," according to a Denver Business Journal article. HFF LLP's Mary Sullivan, John Jugl Jr. and Chris Crawford represented the seller in the transaction.

"We bought this because there are several large tenants in the market place now," said Brian Watson, founder and president of Northstar Commercial Partners in a statement. "This is one of just a few opportunities to be able to accommodate them and their needs."

The complex at 3840 S. Wadsworth Boulevard is currently vacant, but has previously been the home of Gateway Computers, Raytheon, Martin Marietta, Merrill Lynch and most recently Lockheed Martin, which vacated the property in the first quarter. "It's always been for a single tenant," said Watson of the complex, with one building measuring 59,426 square feet and the main one at 139,992 square feet. "It's just the way the buildings are laid out."

For more news and information visit Blumberg Capital Partners.

Kettering Tower Sold to Dunkirk Realty

The tallest office building in downtown Dayton, Ohio was sold this week to NY-based Dunkirk Realty, with an eye on more property in the area. "We're going to buy as much as we can (in the Dayton area)," said Albert Macanian, president of Dunkirk, in a Dayton Daily News article. "With its location in the center of the United States, Ohio — and Dayton in particular — is an ideal location for investment and opportunity. Dayton is a great market for investors, not only because of its location, but for its potential as well. We have a long-term interest in Dayton."

"This is a group of investors with experience in much larger markets, and we are confident they will be very successful in downtown Dayton," said Sandy Gudorf, president of the Downtown Dayton Partnership.

Dunkirk Realty purchased the building at 40 N. Main St. under Tower Partners LLC. The 29 story Kettering Tower claims 486,121 square feet of Class A office space, and has been Dayton's tallest office tower since it was constructed in 1971. Terms of the deal were not disclosed and no immediate deed could be found through the Montgomery County auditors office, according to a Dayton Business Journal article. Major tenants of the property include JPMorgan Chase, Ernst & Young, Merrill Lynch and the Dayton Racquet Club, with recently signed tenants including Sebaly, Shillito & Dyer, Johnson Investment Council, and the Dayton Development Coalition.

For more news and information visit Blumberg Capital Partners.