The Birch Group Acquires Four-Building Portfolio in Short Hills for $255M — One of the Largest Commercial Deals in N.J.’s Recent History | Business

SHORT HILLS, NJ – (BUSINESS WIRE) – April 20, 2021–

Birch Group, a private commercial real estate investor, owner and operator, announced today that it has acquired a significant portfolio of four properties in Short Hills, New Jersey, valued at $ 255 million. The off-market acquisition follows the company’s recent $ 77 purchase of a million dollar portfolio in Morristown and has increased its focus on acquiring world-class, value-added office properties in the suburbs of Northern New Jersey

51 John F. Kennedy Parkway, Short Hills, New Jersey (Photo: Business Wire)

The 843,300 square foot portfolio includes four Class A office buildings located on 51, 101, 103 and 150 JFK Parkway in the affluent Short Hills submarket and widely recognized as one of the most respected and recognized suburban office areas in New Jersey. Cushman & Wakefield represented Mack-Cali Realty Corporation (NYSE: CLI), the seller in the transaction, and is also being acquired by The Birch Group as the exclusive office rental agent for the properties. With the acquisition, the Birch Group has acquired commercial office properties worth over $ 750 million since 2019.

“This portfolio offers the unique opportunity to convert historically performing properties back into first class assets, which is a hallmark of the Birch Group’s strategy. Short Hills is known for its unparalleled prestige, which is reflected in the increased expectations of regional tenants, ”said Mark Meisner, CEO and founder of the Birch Group. “A uniform approach to asset management does not work in this sub-market. Our focus will be on developing tailor-made improvement strategies in order to create lasting value for our tenants and investors alike. “

The portfolio, which marks the Birch Group’s first foray into the Short Hills submarket, has a long history of attracting and retaining blue-chip tenants. Currently 80% rented to an impressive 22 tenants, the Birch Group targeted the portfolio as a unique repositioning opportunity. The unmatched trophy quality and pre-eminent address of Short Hills have drawn Citibank, Investors Bank, KPMG, Bank of America, UBS, Dun & Bradstreet, Morgan Stanley and Wells Fargo – all of them current tenants.

The properties are located just off Route 24 and offer regional access to the Garden State Parkway, I-78, and the NJ Turnpike. You have direct access to a highly skilled workforce in Short Hills, the richest city in NJ and the sixth richest city in NJ, United States. The buildings are complemented by a growing, mixed-use walk-in base that provides convenient access to the high-end Short Hills mall, a 4-diamond Hilton hotel, Canoe Brook Country Club, and The Upton – a recently completed upscale Residential District – includes development from Roseland Residential Trust. The Mall at Short Hills is New Jersey’s premier shopping destination and offers unmatched access to the state’s most exceptional collection of high quality retail stores, including four of the world’s most prestigious department stores and 150 specialty stores, restaurants, cafes and entertainment venues.

The Birch Group will apply its unique value creation strategy to the portfolio in addition to a newly constructed parking deck at 150 JFK Parkway, adding $ 15.2 million in recently completed renovations to the properties by previous owners. To this end, the Birch Group hired the world-famous commercial design firm Gensler to lead the design improvements.

“There was a demographic shift to the suburbs during the pandemic and the migration of this talent pool provides an exceptional opportunity to meet demand for quality office real estate in prime New Jersey markets,” added Meisner. “One of the most prestigious suburbs, Short Hills has consistently achieved above-average rents in New Jersey while maintaining the highest occupancy rates in the market.”

Each of the properties are on the high-growth Route 24 corridor, which is ideally located near affluent residential communities such as Short Hills, Millburn, Summit, Livingston, Chatham and Florham Park. Short Hills alone is home to 35% of New Jersey’s billionaires. They have an average home price of $ 1.475 million and have access to a high-profile talent base that has traditionally attracted constant interest from high-profile Fortune 500 companies and leaders across a range of medical and financial industries. Education and technology.

“These properties are near New Jersey’s most desirable residential areas, which has long enabled them to attract a nationally recognized list of blue-chip tenants,” said David Bernhaut, executive vice chairman of Cushman & Wakefield, New Jersey . Inc. “The Short Hills cache has been instrumental in attracting wealth management, consulting, accounting and law firms, as well as the headquarters of Dun & Bradstreet and Investors Savings Bank. These companies chose Short Hills because of its unparalleled local and regional highway access, proximity to private country clubs, world class hospitality, and other amenities that you simply cannot find in other submarkets. “

The four-building portfolio is less than 15 miles from the Newark Liberty International Airport and near NJ Transit’s Summit Station, which provides tenants and visitors with easy access to Manhattan via the Midtown Direct rail line.

The Birch Group is a private commercial real estate investor, owner and operator with a unique ability to discover opportunities and create lasting value for partners, tenants and investors. Since 2014, we have deliberately expanded our portfolio of income-generating properties to more than 3.8 million square meters of value-adding office assets in strategic markets that have solid foundations and growth potential.

The Birch Group is long-term oriented and has a methodical approach to investing in tracking institutional grade assets that consistently outperform each market cycle. For each property, we listen to the needs of existing and future tenants and implement tailor-made improvement and marketing strategies to create work environments that help them to be successful. Further information can be found at: https://birchgroupllc.com/

KEYWORD: UNITED STATES NORTH AMERICA NEW JERSEY

KEYWORD IN INDUSTRY: COMMERCIAL BUILDING & REAL ESTATE & REAL ESTATE

Copyright Business Wire 2021.

PUB: 04/20/2021 01:07 p.m. / DISC: 04/20/2021 01:07 p.m.

Copyright Business Wire 2021.