Princeton University will pay $33 million for an office building in New Jersey

Princeton University has acquired Princeton Overlook, a 158,180-square-foot Class A office building in West Windsor Township, New Jersey. Cali Futures sold the property for $33.4 million. JLL Capital Markets negotiated on behalf of the seller and procured the buyer.

Princeton University occupies the largest area of ​​the property, and other tenants include Regus and UBS Financial Services.

According to CommercialEdge, the property traded for $38 million back in 2021 when Cali Futures acquired it from Veris Residential.

Originally completed in 1988 and renovated in 2012, the four-story building features two passenger elevators, 37,400 square feet of floor space and 524 covered parking spaces, according to the same source. Princeton Overlook sits on nearly 21 acres and was originally planned for two buildings.

The property is located at 100 Overlook Center, across from US Highway 1 and 17 miles from Central Jersey Airport. Philadelphia is 47 miles southwest.

The JLL Capital Markets team working on behalf of the seller included Senior Managing Directors Jose Cruz and Jeremy Neuer and Senior Analyst Bradley Wachenfeld.

The low office prices in New Jersey

According to the latest CommercialEdge report, office investment volume in New Jersey reached $538 million in October, with assets changing hands at $98 per square foot, well below the national average of $177. Metro outperformed Philadelphia, where deals totaled $316 million.

New Jersey’s office vacancy rate reached 20.1 percent, an increase of 260 basis points over a 12-month period and was the only one in the Northeast markets to exceed the national average of 19.4 percent.

Recent office deals in the metro area include RWJBarnabas Health Foundation’s acquisition of a 154,777-square-foot site in Hanover Township, New Jersey. The asset traded for $14 million in an off-market deal.