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.”
