{"id":1004142986,"date":"2016-04-27T23:37:06","date_gmt":"2016-04-28T07:37:06","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004142986"},"modified":"2020-05-12T00:25:19","modified_gmt":"2020-05-12T08:25:19","slug":"equity-commonwealth-to-sell-hoboken-office-asset-for-tidy-sum","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-to-sell-hoboken-office-asset-for-tidy-sum\/","title":{"rendered":"Equity Commonwealth to Sell Hoboken Office Asset for Tidy Sum"},"content":{"rendered":"

By Barbra Murray, Contributing Editor<\/p>\n

\"Sam<\/a>

Sam Zell, Equity Commonwealth<\/p><\/div>\n

New York<\/strong>\u2014Talk about a profit. Equity Commonwealth<\/a> will soon sell 111 River St. in Hoboken, N.J., for nearly $100 million more than it paid for the office tower in 2009. The office REIT recently agreed to trade the 565,000-square-foot property for $235 million in a transaction with Mack-Cali Realty Corp<\/a>.<\/p>\n

The deal is part of a larger plan. Early last year, Equity Commonwealth announced that it would sell roughly $3 billion of real estate in an effort to rationalize its portfolio, improve operations and maximize shareholder value. The REIT has since actively pursued its strategy, completing a whopping $2 billion in dispositions in 2015. And Equity Commonwealth hasn\u2019t exactly been taking a loss on its sales transactions.<\/p>\n

\u201cI would say to you that, every single asset that we have disposed of, we would not have bought at the price somebody paid us\u2014that’s the ultimate definition of whether you are a buyer or a seller,\u201d Sam Zell, chairman of Equity Commonwealth, said during the company\u2019s fourth quarter 2015 earnings conference call in February. It appears the 111 River transaction is no exception.<\/p>\n

Once commonly known as Waterfront Corporate Center I, 111 River first opened its doors in 2002, with global publisher John Wiley & Sons Inc. having pre-leased 400,000 square feet in a move that effectively kicked off developer SJP Properties\u2019 construction of the 13-story tower.<\/p>\n

In 2004, SJP parted with the asset, selling it to JP Morgan Investment Management for $180 million. Five years later, during a less friendly real estate cycle, JP Morgan sold the building in a $145 million transaction to HRPT Properties Trust, which later changed its name to CommonWealth REIT before becoming Equity Commonwealth in 2014. And here we are, with lead tenant John Wiley<\/a> having renewed its lease for occupancy at 111 River until March 2033, and Equity Commonwealth planning to hand over the property to Mack-Cali for nearly a quarter-billion dollars.<\/p>\n

For Mack-Cali, which focuses on waterfront and transit-based office and luxury multifamily assets, the acquisition of the Class A office building<\/a> will mark the REIT’s entr\u00e9e into Hoboken and leave it with the distinction of being the owner of approximately 25 percent of the Class A office space in the Hudson River Waterfront submarket.<\/p>\n

The 111 River transaction is on track to close in June, pending customary closing conditions and consents required under the property\u2019s fixed-term operating ground lease, which is due to expire in 2098.<\/p>\n

The party in the real estate market continues but, of course, it won\u2019t last forever. \u201cI, again, reiterate that I don’t think the real estate market of the United States can avoid the impact of what’s going on around the world,\u201d Zell said during the earnings call. \u201cPersonally, I think that we are in the early stages of a mild recession and if we’re not, I think we’re going to be in another three or four months.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Equity Commonwealth will sell the 13-story tower to Mack-Cali Realty Corp.<\/p>\n","protected":false},"author":969,"featured_media":1004142987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21825,21783,1600,21742,10,21747],"tags":[],"class_list":["post-1004142986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-finance","category-investment","category-new-york","category-latest","category-northeast","category-office"],"acf":[],"yoast_head":"\nEquity Commonwealth to Sell Hoboken Office Asset for Tidy Sum - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-to-sell-hoboken-office-asset-for-tidy-sum\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Equity Commonwealth to Sell Hoboken Office Asset for Tidy Sum\" \/>\n<meta property=\"og:description\" content=\"Equity Commonwealth will sell the 13-story tower to Mack-Cali Realty Corp.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-to-sell-hoboken-office-asset-for-tidy-sum\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-04-28T07:37:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-12T08:25:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/Sam-Zell.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-to-sell-hoboken-office-asset-for-tidy-sum\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-to-sell-hoboken-office-asset-for-tidy-sum\/\",\"name\":\"Equity Commonwealth to Sell Hoboken Office Asset for Tidy Sum - 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