Golden Gate Capital Makes $14.85M South Jersey Office Deal
Golden Gate Capital acquired seven office buildings in Mount Laurel, New Jersey, outside of Philadelphia for $14.85M from an undisclosed seller, cementing the Brooklyn, New York-based company’s foothold in the South Jersey market.
The 244K SF deal involves the six-building Greentree North Corporate Center on Commerce Parkway and 1001 Briggs Road in the Cambridge Crossing office park. A year ago, Golden Gate bought the 173K SF Colwick Business Center office park in neighboring Cherry Hill for a reported $17.4M from a group of investors including Endurance Real Estate Group and Blue Vista Capital Management.
CBRE represented the seller in the Greentree North and 1001 Briggs deal and was awarded the leasing assignment by Golden Gate. Greentree North has been renamed the Mount Laurel Commerce Center by the new owner. Both properties are near the New Jersey Turnpike and Route 295, providing easy access to Philadelphia and New York.
“At just over 50% occupancy, the portfolio provides Golden Gate Capital a rare opportunity to acquire a stable, existing cash flow along with the ability to enhance value with the lease-up of the available space,” Stephen Marzullo of CBRE’s Philadelphia Commercial Investment Properties team said in a press release.
All of the buildings acquired by Golden Gate are single-story with private entrances, which during the coronavirus pandemic is a selling point for some tenants worried about the logistical problems they might encounter in multi-story properties that require elevators. That’s one of the reasons renters are returning to the office slowly with building occupancy rates rarely surpassing 25%, according to property owners.
‘‘The buildings can accommodate the needs of small and medium-sized tenants who want to minimize exposure to elevators, central building systems, and heavily-trafficked common areas,” Jon Sarkisian, department head of CBRE’s Southern New Jersey office, said in a press release.
According to CBRE, the properties will be managed by Golden Gate Management, a subsidiary of Golden Gate Capital. Golden Gate also plans to make capital improvements in its newly acquired buildings.