Jeff Sutton, Korean funds pay Hartz Mountain $219M for NJ office complex

In one of the largest New Jersey office deals in years, Jeff Sutton partnered with institutional Korean investment firms to purchase a Weehawken, New Jersey, office complex from Hartz Mountain Industries for $219 million, according to sources. The sale closed about a week ago.

Sutton partnered with KTB Securities and other investors for the equity, according to sources. The purchase was financed with a $131.4 million loan from Korean lender KB Kookmin Bank.

The 617,187-square foot complex was built in 1989 and is also known as Lincoln Harbor. It has the address of 1000 Harbor Boulevard and is leased to the global bank UBS.

The UBS lease runs into 2035.

This is at least the second transaction with Sutton, KTB and KB Kookmin as participants. The fund acquired a majority in the Williamsburg, Brooklyn retail property 103 North 4th Street for $31.3 million in March 2021, with $20.1 million financed by KB Kookmin Bank. That property is net leased to Bank of America.  PincusCo first reported the sale but the partner was not disclosed at the time.

The Weehawken office purchase represents a new avenue of investment for Sutton, ranked by Forbes as a billionaire, who secured his fortune with a focus on New York City retail real estate over the last three decades. But he’s branched out from retail before. In 2016, Sutton began buying multifamily properties and earlier this year his firm Wharton Properties filed plans on West 34th Street near the Empire State Building to develop a large hotel tower.

While the investment asset class is new, Sutton has long-partnered with larger firms for equity, for example with SL Green Realty, General Growth Properties , and others on retail investments.

The brokers representing Hartz were Jeff Dunne of CBRE and Andy Merin of Cushman & Wakefield.

Hartz Mountain, Sutton and the brokers declined to comment.