By Linda Moss CoStar News
An anchor tenant at a Hudson River waterfront office tower owned by Manulife US Real Estate Investment Trust has extended the lease for its 117,280 square feet of space.
Philadelphia-based Ace American Insurance Co. signed a 65-month lease extension for 10 Exchange Place in Jersey City, New Jersey, according to landlord Manulife, a Singapore-listed real estate investment trust.
The deal will move back Ace's lease expiration from December 2029 to May 2035, Manulife said Thursday. The tenant will retain its entire 117,280 square feet of space at the same rental rate, the REIT said. Ace has been a major tenant at the 740,354-square-foot office high-rise, known as Exchange, since Manulife acquired the property in 2017. It paid $315.1 million for the building, according to CoStar data.
Global insurer Ace contributed 5.4% of Manulife's total gross rental income as of Dec. 31 last year and is the landlord's fourth-largest tenant. E-commerce giant Amazon has also recently renewed its lease for office space at Exchange, according to Manulife.
“We remain focused on prioritizing high-quality tenants and executing accretive leasing strategies that strengthen portfolio fundamentals over the long term,” John Casasante, Manulife's CEO and chief investment officer, said in a statement.
The Hudson waterfront continues to attract major financial services and multinational tenants due to its proximity to Manhattan and lower rents. While the pace of leasing activity in the Hudson waterfront office market has moderated in the first quarter, asking rents have remained resilient year-on-year as total office inventory continues to hold steady
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