In one of the most creative transactions of the year, Vision Properties has restacked and extended several key leases at the iconic Metropolitan Center in East Rutherford, NJ, maintaining the building’s 100% occupancy.
The most noteworthy transaction is Hudson Group’s expansion of its occupancy to 93,308 square feet while simultaneously extending its lease. Other key transactions include Aegis Insurance Services’ trimming its space to 69,335 square feet while extending its lease, MWW Group’s relocating to smaller space within the building, and Ameream’s expansion of its allocation to 15,059 square feet. All of these transactions have lease terms ranging from 10 to 15 years.
“When we acquired the property in 2014, we knew that we had to be extremely creative in order to expand Hudson Group’s lease or else we could risk losing them,” says Anthony Arena, principal of Vision Properties. “After intense negotiations involving seven parties, we were able to accommodate the needs of our tenants and maximize our investor’s long term value.”
Vision Properties believes that Metropolitan Center is going to continue to experience strong leasing interest, as the soon-to-be-completed American Dream project will create one of the most amenity-rich office locations in suburban New Jersey at the property. To coincide with the improving location, Vision Properties is planning to renovate the lobby and café areas of the property to allow for a more contemporary design.
“This transaction is a testament to building’s position as New Jersey’s premier trophy tower asset,” says Gregory Barkan, an SVP with CBRE. “With vacancy rates still hovering in the mid-20% range in this submarket and throughout New Jersey as a whole, this building continues to remain 100% leased due to its dominant regional location, superb access to mass transit options and its host of first-class on-site amenities.”
Hudson Group was represented in the transaction by Raymond Trevisan and William O’Keefeof Cushman & Wakefield; Aegis Insurance was represented by John Feeney and George Martin of Savills Studley; and MWW Group was represented by Barry Zeller, Robert Rudin and David DeMatteis of Cushman & Wakefield. Vision Properties was represented by Barkan, Pat Murphy and Robert Norton of CBRE, as well as through in-house representation by Arena and William Bertolero.