HFF Announces the Sale of a 538,107-Square-Foot Medical Office Complex in Morristown, New Jersey

Sep 12, 2018 04:48 pm

Holliday Fenoglio Fowler, L.P. (HFF) announces the sale of a 538,107-square-foot, three-building, Class A medical office complex in Morristown, New Jersey.

The HFF team represented the seller, National Business Parks, Inc., and procured the buyer, Harrison Street Real Estate Capital, LLC, in what is the largest medical office sale in the state of New Jersey.

The three buildings are 93 percent leased to Atlantic Health System (Moody’s Aa3), an integrated health delivery system, and house some of their critical offices and unique services. Located at 435, 465 and 475 South Street, the complex is situated in the highly coveted city of Morristown, just one mile south of Atlantic Health Systems’ flagship 742-bed hospital.

The HFF investment advisory team representing the seller included senior director Ben Appel, senior managing director Jose Cruz, managing director Evan Kovac and associates Matthew DiCesare and J.B. Bruno.

“Atlantic Health System provides care to more than 1,100 patients daily at this complex,” Appel said. “The additional land at the complex, although not yet spoken for, is earmarked for an 80,000-square-foot expansion. The hospital has expanded multiple times on this campus in recent years.”

“Demand from the investment community for well located, good credit, medical office buildings is very strong in Northern and Central New Jersey,” added Cruz. “These assets are highly sought after especially given lack of opportunities to acquire these types of deals in the market.”

HFF and Holliday GP Corp. ("HFF") are licensed New Jersey real estate brokers.

About National Business Parks, Inc.

National Business Parks (NBP) is a leading owner, manager and developer of medical office, office and laboratory space in New Jersey. Founded in 1967, NBP has grown steadily in the northern and central parts of the State. The original vision of the Zirinsky family continues today with John Zirinsky at the helm with the same goal to provide health systems and corporate America with an alternative working environment that surpassed those in other regional parks or midtown locations.

About Harrison Street Real Estate Capital LLC

Harrison Street Real Estate Capital LLC (“Harrison Street”) is one of the leading real estate investment management firms focused on the Education, Healthcare and Storage sectors. The firm has created a series of differentiated investment strategies across multiple risk/return platforms. Headquartered in Chicago, the firm employs a 125-person team with approximately $15.6 billion in assets under management. For more information, please visit harrisonst.com.

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

BEN APPEL, (412) 281-8714
HFF Senior Director
JOSE CRUZ, (973) 549-2000
NJ Lic. #8743725
HFF Senior Managing Director
KRISTEN MURPHY, (617) 338-0990
HFF Director, Public Relations