Peakstone Sells New Jersey Office Asset

Signature Acquisitions has expanded its suburban New Jersey office holdings with the purchase of 14 Sylvan Way, a 203,506-square-foot building in Parsippany, N.J. Peakstone Realty Trust previously owned the three-story asset, Yardi Matrix shows.

JLL Capital Markets represented the seller and procured the buyer. Peakstone acquired the office building in June 2015 for $81.4 million from Veris Residential, the data provider shows. Formerly known as Mack-Cali Corp., Veris sold all its urban and suburban office properties as it changed its focus to multifamily real estate.

The low-rise is located within the Arbors @ Parsippany, a 2.1 million-square-foot office campus that is in the midst of a transformation from a pure-play office environment to a mixed-use campus. The complex is located on 23 acres near interstates 80 and 287, providing easy access for commuters in Morris County and Northern New Jersey. Newark Liberty International Airport is within 25 miles.

The LEED Gold certified office building came online in 2013 and features a two-story atrium lobby. Amenities include a cafeteria/bistro, oversized courtyard, tenant lounge, game room and conference facilities. It also has 916 parking spaces.

The building is fully leased to Travel + Leisure through August 2029. However, the leisure travel company has vacated the building and has sublet more than 94,000 square feet to other users including CohnReznick, which occupies the third floor, according to Real Estate NJ.

JLL Capital Markets Investment Sales and Advisory Senior Managing Directors Jose Cruz and Jeremy Neuer, Associate Michael Kavaler and Executive Managing Director Tim Greiner led the team representing the seller.

Peakstone pivots away from office assets

Peakstone is in the process of selling its office holdings as it transforms into a pure-play industrial and industrial outdoor storage REIT. In April, an entity affiliated with Peakstone sold a two-building, 451,598-square-foot office campus in Fort Mill, S.C. U.S. Realty Advisors acquired the asset for $106.8 million in one of the largest office deals in metro Charlotte, N.C., since the start of the year.

The firm also sold The Merion Building, a 71,800-square-foot medical outpatient facility in King of Prussia, Pa. Onicx Group acquired the suburban Philadelphia asset.

During the REIT’s third-quarter earnings call, CEO & President Mike Escalante said the REIT sold 12 office properties totaling approximately $363 million as of October, leaving 12 office assets remaining in its portfolio. The REIT expects to complete the sales by early next year.