Med Office Building Trades for $14M

HACKENSACK, NJ-Hartz Mountain Industries has picked up Prospect Plaza here for $13.75 million from Raia Properties Corp. The three-story medical office building at 385 Prospect Ave. totals 61,052 sf of office space plus 10,266 sf of commercial space, and the sale price translates to nearly $193 per sf, including the storage space.

The deal was arranged by Jeffrey R. Dunne and Jeffrey J. Oram of CB Richard Ellis’ New York Tri-State Investment Team. “This is our first Hackensack asset,” says Emanuel Stern, president and COO of the Secaucus-based Hartz. “This purchase is the latest is a series of transactions we’ve made with CBRE recently.”

The building, which sits on 1.6 acres, is 92% leased to a roster of 23 office tenants, 19 of which are from the medical industry. The building is located less than a mile from Hackensack University Medical Center. “It’s the single best option for medical tenants looking for hospital quality office space with proximity to the medical center,” Dunne says.

“This sale further allows us to implement our two-pronged diversification strategy,” says Samuel A. Raia, director of asset management for the Ramsey-based Raia Properties Corp. “Our strategy is to acquire garden-style apartment communities in the southeastern US, and to develop self-storage facilities in the tri-state area.”