Last month this blog noted that Wells REIT II paid a near record price for a downtown Washington DC office property. The Wall Street Journal reports that CB Richard Ellis REIT has paid a record price for a Jersey City property. The REIT is paying $350 per square foot, and the return expectations are in the high 7% range, which, according to the Wall Street Journal article is a bargin compared to Manhattan real estate just across the Hudson River. Here are some specifics from the article:
Hartz Mountain Industries Inc. this week sold twin 12-story office buildings in Jersey City’s Colgate Center in a deal that values them at about $310 million. That translates into a record $375 a square foot, according to Real Capital Analytics, a real-estate research firm.
The buyer, CB Richard Ellis Realty Trust, a nontraded REIT, is paying about $70 million and assuming $240 million in debt for the buildings at 70 and 90 Hudson St., which offer unobstructed views of Manhattan and are 100% leased.