Keystone Closes on Fair Lawn Office Building Deal

by John Jordan, GlobeSt.com
In a deal that is part of the previously announced portfolio acquisition between the two firms, a joint venture led by Keystone Property Group reports it has closed on the acquisition of 17-17 Route 208 here from Mack-Cali Realty Corp. for $12.5 million

The two companies announced earlier this year they would form joint ventures to acquire the portfolio of several office properties that Mack-Cali owns throughout Northern New Jersey, New York, and Connecticut.

The 17-17 Route 208 North property is a three-story, 150,477-square-foot class A office building with underground executive parking for 114 cars and surface parking. Balla Cynwyd, PA-based Keystone says it will invest in enhancements to the building's common area hallways, bathrooms and amenities, including an on-site cafeteria.

"In line with our strategy to create value through reinvestment, we look forward to executing on our plans to enhance 17-17 Route 208 North by making upgrades to the building's common areas," says Bill Glazer, president of Keystone Property Group. "The property's desirable Bergen County location, with direct access to a robust highway network, positions it strongly in the regional market among quality tenants."

Earlier this year, Keystone closed on four other New Jersey commercial properties as part of the company's portfolio deal with Mack-Cali, including 412 Mt. Kemble Avenue in Morris Township, 30 Knightsbridge Road in Piscataway, 470 Chestnut Ridge Road in Woodcliff Lake, and 530 Chestnut Ridge Road in Woodcliff Lake. Keystone reports it will reinvest in the properties through redevelopment, management and upgrades to each site. Through its partnership with Keystone, Mack-Cali will participate in value creation above certain hurdle rates, handle leasing of the portfolio, as well as share in management fees, company officials state.

Mitchell E. Hersh, president and CEO of Mack-Cali, says, "The reinvestment strategy in place for 17-17 Route 208 North will enable the partnership to both retain and attract high-caliber tenants as we capitalize on the building's prime location and space opportunities. We are pleased to be closing on this transaction, as we continue to identify new avenues for growth through strategic investment."
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