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Deals & Dealmakers

NY Life sells Garden State office complex

New York Life Real Estate Investors has sold the Offices at Bedminster on behalf of its client at a nearly $10 million loss, according to sources.

The company acquired the 194,000 s/f Class A office complex at 500 and 550 Hills Drive for $43.7 million in 2006, according to public records.

It was acquired by an affiliate of New Jersey-based Northeast Capital Group in a deal brokered by JLL.

“Despite these very challenging economic times, we are seeing buyers make long-term investment decisions on office assets in the northern and central New Jersey market,” said Jose Cruz, a senior managing director with JLL Industrial Capital Markets team who represented the seller with Kevin O’Hearn, Michael Oliver, Steve Simonelli and J.B. Bruno.

JOSE CRUZ

“The quality, location and strong tenant base of the asset were the main reasons for the high level of interest in The Offices at Bedminster.”

Situated on nearly 16 acres at 500 and 550 Hills Drive, the property is in Somerset County near the intersection of Interstates 78 and 287, two of the region’s main highways.

The Offices at Bedminster recently underwent a multi-million-dollar renovation that included upgrades to common areas, including a new fitness center and lobby area. Additional features include covered executive parking, outdoor courtyard with picnic area, grab-and-go café and fountain pond. The 550 building is LEED certified and has a WiredScore Platinum certification, while the 500 building is ENERGY STAR certified.

The complex, built in 1988 and 1989, is currently 86 percent leased with a WALT of about seven years and anchor tenants Peapack Gladstone Banka and Aerie Pharmaceuticals.

“Getting this deal done during a pandemic was certainly a challenge, however, New York Life afforded appropriate timing, which resulted in Northeast Capital being able to perform strongly and close at the award price,” O’Hearn commented.

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