The KABR Group has sold a second office building in the Overpeck Corporate Center, a 60-acre mixed-use development in Ridgefield Park, NJ.
85 Challenger Road was acquired by Asia Investment Management Inc (AIM), a company based in Seoul, Korea, for an undisclosed price in a deal brokered by JLL.
The JLL Capital Markets team was led by senior managing directors Jose Cruz and Kevin O’Hearn, along with Steve Simonelli, Michael Oliver and J.B. Bruno.
“The investment opportunity was appealing to both domestic and offshore capital given the credit and term remaining which provides a predictable cash flow for the buyer. We are pleased to see more overseas equity pursue commercial real estate transactions in the state of New Jersey,” remarked Cruz.
Samsung Electronics America leases approximately 233,000 s/f at 85 Challenger Road. Samsung has occupied the property for more than 10 years. In addition to investing millions of dollars into the asset, Samsung also recently executed a lease extension.
Samsung has deep roots in the surrounding communities and today has approximately 950 employees at 85 Challenger Road. Samsung affiliate companies, with several hundred employees in the neighboring buildings, also represent a significant and long-term presence on Challenger Road.
The sale of 85 Challenger marks an important milestone in the lifecycle of the KABR Group.
KABR acquired 85 Challenger Road for just north of $10 million in 2009 during the depths of the financial crisis, when the asset was entirely vacant.
KABR Group subsequently purchased three additional distressed office buildings on Challenger Road and spent several years, and tens of millions of dollars, upgrading the buildings and improving the surrounding area. Overpeck Corporate Center – with approximately 1 million square feet of combined commercial space – is now considered one of the premiere office locations in the state of New Jersey, is 97 percent occupied, and is the workplace for more than 3,500 employees. KABR will continue to manage the 85 Challenger property on behalf of AIM.
“KABR is proud to have partnered with Samsung during the past 11 years and excited for the continued collaboration with new owners – A.I.M. – in their first US acquisition,” said Kenneth Pasternak, Chairman and CEO of KABR Group.
Just last week, KABR and its JV partner Kushner The Birch Group has sold 55 Challenger Road to The Birch Group.