Spear Street Capital has purchased two office towers across the river from New York City’s Manhattan.
The San Francisco-based private equity real estate firm bought neighboring buildings in Jersey City, New Jersey, at 90 Hudson Street and 70 Hudson Street, for $299 million, according to a Monday announcement from Cushman & Wakefield, which advised seller Grammercy Property Trust. The purchases were the firm’s first acquisitions using capital from its latest fund, SSC V. The properties are located across the river from New York City, with access into Manhattan via ferry and train.
The combined buildings total nearly 858,000 square feet. 90 Hudson Street, a 12-story building, is fully occupied, anchored by long-term tenant and investment manager Lord, Abbett, according to real estate data provider Real Capital Analytics. Spear Street will look for new occupiers for the neighboring 12-story building, 70 Hudson Street, which is now vacant after the building’s previous tenant, Barclays Capital, left. Cushman & Wakefield said the 409,272 square foot building is the largest block of office space along the Hudson waterfront.
“We are excited to acquire such prominent assets on the Jersey City waterfront with close proximity to Manhattan and spectacular water and city views,” John Grassi, Spear Street’s chief executive officer, told PERE. “Our large block of available space in 70 Hudson is up-to date and efficient and should be a powerful draw for both existing tenants in Jersey City and new arrivals.”
Spear Street held a first and final close for SSC V in September. The firm closed the fund at its nearly $1.1 billion target, its largest vehicle to date. Spear Street’s investment strategy for the fund series is to target US and Canadian offices that cost more than $25 million.