Last week, I wrote about an unnamed building that was mostly vacant. This week, I’m writing about a building that’s 100% leased.
My week started, as usual, checking my NewsFunnel to see what news might be of interest, both to me, as well as my clients. One of the top articles announced the sale of One Meadowlands Plaza, again.
Formerly known as the Metropolitan (“Met”) Center, the building sits across the street from MetLife Stadium at the junction of Route 3 and the New Jersey Turnpike (Exit 16, for you locals). After being bought by KBS in 2011 for $104.9 million, the building was ultimately purchased by Vision Properties (a wholly owned subsidiary of Arena Capital Group) for $108.7 million. CBRE’s Institutional Properties Team represented the seller in the transaction.
So, why would a building in the Meadowlands, a somewhat soft submarket without direct rail access, fetch such a high price? The answer to that question is simple. The building has an amenity package that is second to none in our suburban market, including:
· Covered and secured parking
· 24/7 security
· A fitness center
· A cafeteria
· A common conference room with video conferencing capabilities
· A building management team that includes concierge-type services
· A car wash and detailing service
· A shuttle to Secaucus Junction (providing rail access)
· A shuttle that will take tenants to local destinations as well as the airport,
I might’ve forgotten a couple, too. The building is also next door to the recently rebranded Meadowlands Hilton, which includes its own amenities like a full conference center and Starbucks. If all of that wasn’t enough, ownership has invested in the common areas in addition to the amenities - making it a true Class A suburban building. Is it any wonder that the only space available in the building is via sublease?
This building may be the best example we have in our market of an owner investing in the asset and having that investment pay off. Hopefully the new owner will continue to offer top-of-the-market amenities and experience the rent growth they obviously anticipate.