The Birch Group has acquired a three-building portfolio in Morristown, N.J. for $77 million.
The 411,737 s/f portfolio comprises three Class A office buildings located at 60 Columbia Drive, 100 Southgate Parkway, and 1200 Mount Kemble Avenue. Cushman & Wakefield’s Capital Markets Group represented Lincoln Equities Group, the seller in the transaction.
The portfolio acquisition represents Birch Group’s latest investment in the Morristown submarket, where the firm owns 350 & 360 Mount Kemble Avenue — Class A office buildings acquired in 2018 that now operate at 98 percent occupancy.
“We strongly believe in the vitality and viability of the suburban New Jersey office market, which has been hampered by the pandemic but is positioned for a strong rebound,” said Mark Meisner, founder and president of The Birch Group.
“Morristown offers a thriving downtown with access to various restaurants, local retail and an abundance of newly constructed residential apartments. The region has historically attracted corporate interest from prominent organizations hoping to tap into the highly educated, top-tier workforce, and we’re confident we’ll continue to build on our track record of success.”
The Birch Group plans tailored capital improvements and upgrades at each of the properties, complementing the recent $6.7 million of renovations completed by seller, Lincoln Equities Group.
The Birch Group will look to attract tenants that are seeking to locate or expand in Morristown, but have been unable to find space given the heightened demand in the region, which has an office vacancy rate of just 3.5 percent.
“Morris County is known for its major corporate presence and for having the state’s highest concentration of Fortune 500 firms,” said David W. Bernhaut, executive vice chairman of Cushman & Wakefield of New Jersey, Inc.
“There has been increased interest and leasing velocity in the region recently, and we’re confident The Birch Group will build upon this momentum and the firm’s recent leasing success at 350-360 Mount Kemble.”