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Deals & Dealmakers

Cushman & Wakefield and CBRE Arrange $420M Sale of Harborside 1, 2, and 3 in Jersey City

Cushman & Wakefield and CBRE announced today that the real estate services firms have arranged the $420 million sale of Harborside complex, a 2,010,201-square-foot mixed-use portfolio located at 150 Hudson (Harborside 1), 200 Hudson (Harborside 2) and 210 Hudson Street (Harborside 3) in Jersey City. This monumental transaction, the largest office sale year-to-date in the United States (by nearly $150M) and the largest multitenant office sale in the history of New Jersey, is remarkable given the capital market challenges facing office buildings and the increase in interest rates since Q3 2022.

CBRE’s Jeffrey Dunne, Bill Shanahan, and Roland Merchant, along with Cushman & Wakefield’s Andy Merin, David Bernhaut and Frank DiTommaso, co-arranged the transaction. The new ownership acquired the properties from Veris Residential.

Closing a transaction of this size and complexity in the current environment required creativity and motivation from all parties. CBRE and Cushman & Wakefield highlighted the A+ location and ownership’s recent capital improvements and renovations including Harborside 1 being completely stripped down to its original structure and reskinned.

New ownership will invest significant new equity into the common areas, retail plaza and outdoors, designed by Gensler. These new amenities will include a conference and lounge facility, a tenant-only gym, and a spectacular rooftop with green space and pickle ball court.

Financing for the property was secured from three highly qualified lenders—Citigroup, BMO and Meritz Securities.

Mr. Dunne commented, “We are proud to have negotiated this iconic transaction. This deal marks the largest office sale in the United States in 2023. We expect new ownership to ride the tailwinds of Veris’s significant capital investment over the past few years in the lease-up of Harborside 1, 2 & 3’s highly desirable space. This process has been a year in the making, through many twists and turns in the economy and capital markets. Getting the transaction across the finish line was truly a team effort.”

“The sale of the Harborside complex is a monumental achievement and arguably one of the most significant trades we will see in 2023 across the U.S., particularly given the current market conditions and general sentiment for large-scale commercial properties,” said Merin. “Harborside is a truly unique business destination that is essential to the Jersey City waterfront community, providing the framework for a first-class work environment with the amenities and atmosphere needed to foster and attract today’s dynamic labor force.”

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