KBS Real Estate Investment Trust II (KBS REIT II) has sold an office campus in Florham Park, New Jersey for $311 million in the largest New Jersey suburban, multitenant office sale since 2008.
The buyer of the seven-building property, Park Avenue at Morris County, is a private New York City based investor backed by offshore capital.
Jeffrey Dunne, Jeremy Neuer, Steve Bardsley, David Gavin, Gene Pride, Travis Langer and Zach McHale of CBRE Institutional Properties represented the seller, KBS, and also procured the buyer.
Park Avenue at Morris County (or “Park Avenue”), located at 100-600 Campus Drive, consists of six Class A office buildings totaling 1,189,484 s/f set on a 135- acre site and a seventh building which houses The Goddard School. The suburban office park was primarily developed between 1989 and 1999 and has recently undergone a capital improvement program that included upgrades to the common areas/lobbies, building systems and amenities.
“These improvements added tremendous value to the asset,” said Shannon Hill, senior vice president and asset manager for KBS. “Though we purchased this property during the economic downturn, through strategic upgrades we were able to maintain its prestige in the industry and attract several blue-chip tenants during our ownership.”
The property includes mix of institutional tenants, an amenity package and a train access to Manhattan from the Madison Train Station, situated two miles from the property.
CBRE Vice Chairman Dunne commented, “The availability of a trophy office asset of this magnitude is highly unusual and a one-of-a-kind investment opportunity. The buyer recognized the ability to increase revenue through lease up of the vacant space and should experience great long-term appreciation with the asset’s strong cash flow.”