Mack-Cali to sell 101 Hudson Street in Jersey City
One of the most prominent buildings on the Jersey City skyline is expected to change hands in the coming weeks as a buyer has been found for an office complex just one block from the Hudson River.
Several sources said Mack-Cali had agreed to a deal that would transfer ownership of their 42-story property at 101 Hudson Street to The Birch Group, based in Nanuet. The sale price is estimated at 380 million dollars and the agreement, initially reported by Real Estate Weekly, is expected to close within the next 30 days.
The 1.2 million square foot Art Deco office building, located near Exchange Place stations on the PATH and the Hudson Bergen Light Rail, features a four-story parking garage with 900 spaces plus shops on the ground floor. floor with tenants including Five Guys, Au Bon Pain, and Friend. Built in 1982, the building has office leases in place with companies such as Merrill Lynch and AIG.
Adam Spies, Andy Merin, David Bernhaut and Kevin Donner of Cushman & Wakefield organized the sale, sources said. Mack-Cali bought the building in 2004 for $ 329 million and re-mortgaged the tower with a $ 250 million 10-year loan in 2016.
The Birch Group has been busy lately, recently acquiring office complexes in Princeton and Morristown. Jersey City‘s deal with Mack-Cali will be the second complex the Birch Group has acquired from the company this year, as they also purchased an 840,000 square foot office portfolio in Short Hills in April.
The sale comes at a tumultuous time for Mack-Cali following the ouster of former CEO Michael DeMarco last summer amid a year-long proxy battle. The company has lost much of its suburban business portfolio in recent months, including a complex in Red Bank that it offloaded for $ 84 million.
Despite the problems, Mack-Cali remains one of the largest landowners along the Jersey City waterfront. Their holdings include office and retail complexes like the newly renovated Harborside and the upcoming residential development The Charlotte.
In addition, Mack-Cali owns land on Morgan Street where future development is planned. The company has also obtained approvals to build a 68-story residential project along Hudson Street that has yet to be opened.