Ares Management provides $147.7M loan for NJ office portfolio
JLL Capital Markets arranges the 3-year acquisition loan for the 10-building portfolio totaling 1.5 MSF in Morris County
MORRISTOWN, N.J., September 21, 2020 – JLL Capital Markets announced today that it has arranged $147.72 million in financing for a 10-property office portfolio totaling 1.5 million square feet in Morris County, New Jersey.
JLL worked on behalf of the borrower, a joint venture between Onyx Equities, Taconic Capital Partners, Axonic Capital and Machine Investment Group, to secure the three-year, floating-rate loan provided by funds managed by the Real Estate Group of Ares Management Corporation (NYSE: ARES). Loan proceeds were used to acquire the portfolio from Mack-Cali. The sale transaction was represented by JLL’s Capital Markets team.
The portfolio consists of nine assets in Parsippany: 1, 3, 5 and 7 Sylvan Way; 4, 6 and 8 Campus Drive; 2 Hilton Court and 11 Dryden Way, and 1 Giralda Farms in Madison. Parsippany and Madison are located in Morris County, which is part of the Northern New Jersey office market, which, with more than 152 million square feet, is the 17th largest office market in the United States. The area is home to numerous Fortune 500 companies and boasts a highly educated workforce as well as superior connectivity and proximity to Manhattan, 40 miles east. The portfolio is 84% leased overall to a diverse tenancy including national credit and local tenants.
The JLL Capital Markets team representing the borrower included Steven Klein, Christopher Peck, Michael Klein, Jose Cruz and Alex Staikos.
“This is a best in class sponsorship team that is unrivaled in its ability to maximize value in suburban office assets,” Klein said. “Under this ownership, the portfolio is extremely well positioned to benefit from tenants seeking high-quality office space in a strong location.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.