CBRE Sells Jersey’s Met Center to KBS REIT Affiliate for $105M
CBRE Group Inc. has sold the 421,000-square-foot Metropolitan Center in East Rutherford, N.J. for $104.9 million to an affiliate of KBS Real Estate Investment Trust II.
December 21, 2011
By Nicholas Ziegler, News Editor
It’s a fine way to close out the year. Following on the heels of the $378 million sale of Newport Tower in October, the largest office-building sale ever in New Jersey, CBRE Group Inc. has sold the 421,000-square-foot Metropolitan Center in East Rutherford, N.J. for $104.9 million. The building was purchased by an affiliate of KBS Real Estate Investment Trust II, which has retained CBRE for leasing and management.
The building, which sits immediately opposite from MetLife Stadium, the newly opened home of the National Football League’s Giants and Jets, is certified LEED Gold. The 15 stories are currently 98 percent leased to clients including Hudson News, MWW Group, Cushman & Wakefield Inc. and Michael Kors.
Jeff Dunne with CBRE’s institutional group in New York characterized the building as “a highly performing asset in both the near and long term.”
The metro New York City area, while not as constant as Manhattan, has been stabilizing throughout 2011. A report by Cassidy Turley found that the Northern New Jersey office market entered the third quarter of this year with a vacancy rate of 16.5 percent, down 10 basis points from the previous quarter. “Overall,” the report noted, “renewals and/or lease extensions are prevalent in this market and represent a high percentage of leasing activity.”
*This story was updated on December 22, 2011, at 10:33 a.m. EST to reflect the relationship of the purchaser, an affiliate of KBS.
