Singaporean firm Manulife US REIT has just acquired 500 Plaza Drive in Secaucus, New Jersey for $115 million.
The property is an 11-story office tower that recently underwent a $16 million renovation. Manulife, which bills itself as the “first pure-play U.S. office REIT listed in Asia,” plans to fund the purchase through a combination of debt and equity from loans and a proposed private placement of 73.6 million new units.
“We are pleased to acquire a best-inclass freehold office asset in New Jersey, three miles away from New York City. This not only diversifies the REIT’s portfolio geographically, but also strengthens it overall,” said Jill Smith, the CEO of Manulife US.
The seller was Boston-based real estate investment firm Marcus Partners. Marcus bought the 460,000 s/f building from Hartz Mountain Industries for $69 million in 2014. According to Manulife, the acquisition will increase the value of its portfolio by 13.9 percent to $950.2 million.
The building is currently 98.9 percent occupied. It contains the headquarters of children’s apparel retailer The Children’s Place and clinical laboratory testing firm Quest Diagnostics. Other tenants include AXA Equitable Life Insurance, Xerox Business Services and Verizon.