China Construction America Inc. a subsidiary of a Beijing- based construction firm has purchased an office building in New Jersey for around $71 million in an effort to increase expansion in the U.S.
The building, located at 445 South Street in Morris Township is the company's first investment in New Jersey. The 320,000 square feet building was constructed in 1982. It was purchased by Advance Real Estate, a prominent property firm, in 2005 for $30.2 million and then renovated for another $25 million, reports New Jersey News.
The building complex comprises of three four-floor wings that are connected by a two story atrium. Amenities of the building include a cafeteria, a fitness center, two common area conference rooms and a large basketball court as well. The building also has 1400 parking spaces and is LEED certified.
The building is currently leased out to major Insurance companies. However, China Construction may occupy a part of the building now that ownership has changed hands, reports Bloomberg.
"This is really a strategic investment that has uses to us both from an operating standpoint and also as an investment for our firm," Phillip Gesue, head of China Construction's U.S. operations, said to Bloomberg.
The exodus of Chinese developers from their country into the emerging real estate markets of America is not a surprise. As the Chinese government tightens property regulations to avoid an asset bubble in the country, more number of investors are moving abroad.
Recently, China Vanke made its debut in the American real estate market with a partnership deal of building two residential San Francisco Towers, with Tishman Speyer. Also, a group of Chinese developers was in talks of purchasing 40 percent stake in the General Motors office towers in Manhattan, New York. If sold, the deal will be the largest office building transaction in the U.S.
