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