A more than 500,000-square-foot medical complex that houses Atlantic Health System offices and services has been sold, according to real estate firm Holliday Fenoglio Fowler L.P.
The Class A complex in Morristown includes three buildings at 435, 465 and 475 South St. totaling 538,107 square feet, the firm said. It is 93 percent leased to Atlantic Health System.
“Atlantic Health System provides care to more than 1,100 patients daily at this complex,” Ben Appel, an HFF senior director, said in a prepared statement. “The additional land at the complex, although not yet spoken for, is earmarked for an 80,000-square-foot expansion. The hospital has expanded multiple times on this campus in recent years.”
The building was sold by National Business Parks Inc. to Harrison Street Real Estate Capital LLC. HFF said the deal represents the largest medical office sale in the state.
Financial terms were not disclosed.
The HFF team representing the seller included Appel; Jose Cruz, senior managing director; Evan Kovac, managing director; and Matthew DiCesare and J.B. Bruno, associates.
“Demand from the investment community for well-located, good credit medical office buildings is very strong in northern and central New Jersey,” Cruz said. “These assets are highly sought after, especially given lack of opportunities to acquire these types of deals in the market.”
