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.
“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.
