American Equity Partners Lands 125 KSF Lease in Jersey City
This is the largest new office transaction in the submarket since September 2022.
Kessler Rehabilitation Center has leased 125,000 square feet on the ninth and 10th floors of Harborside 6 in Jersey City, N.J. American Equity Partners owns the 10-story, 207,670-square-foot office building.
The lease deal was the largest new office transaction in the submarket since September 2022, according to Newmark. Senior Managing Director Jamie Drummond, Managing Director Dan Reider and Associate John Crawford represented AEP in the transaction.
Drummond said Kessler will use the space for inpatient rehabilitation hospital and other inpatient and outpatient post-acute health-care services. Kessler is part of the Select Medical Outpatient Division, a nationally renowned and community-based physical therapy and rehabilitation provider. The center offers occupational and hand therapy, sports medicine, workplace injury treatment and prevention and specialized rehabilitation services.
Harborside 6 highlights
AEP acquired the building for $46 million from Veris Residential in 2023, securing a $29.3 million bridge loan from Kawa Capital Management for the purchase, according to CommercialEdge. Formerly known as Mack-Cali Corp., Veris sold all its urban and suburban office properties as it changed its focus to multifamily real estate.
This is the first time office space at Harborside 6, located on a 2.3-acre site at 135 Greene St., has hit the market in years. Completed in 2002, the building also has a Whole Foods Market on the ground floor and a seven-story parking garage with about 1,100 parking spaces. Floorplates are 63,000 square feet, according to CommercialEdge. The Class A property has 17-foot slab-to-slab ceiling heights and floor-to-ceiling windows.
“Harborside 6 at 135 Greene St. is a clear example of the growing demand for high-quality office space in Jersey City, particularly properties that combine top-tier amenities with exceptional connectivity,” Newmark Research Manager Lukas Berasi told Commercial Property Executive.
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The building is part of the 3.2 million-square-foot Harborside campus, a mixed-use property that also includes 3,000 residential units. On-site amenities feature a large atrium with seating and event space, a food hall, a retail concourse, a daycare center, a bank, urgent- and primary-care medical offices and two parking garages.
The campus also features a New York Waterway Ferry terminal and offers easy access to NJ Transit’s Hoboken Terminal and Newark Liberty International Airport.
Berasi said top-tier assets like Harborside 6 continue to attract significant space commitments as demonstrated by the Kessler lease.
“Demand for high-quality office space remains strong with premier buildings consistently outperforming the broader market in terms of absorption. The flight to quality across Jersey City and Northern New Jersey is clearly evident, as Class A properties now account for more than 55 percent of total leasing activity,” Berasi concluded.
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