Rubenstein Partners and Onyx Equities have sold a New Jersey office property for $86 million more than they paid for it in 2013.
The JV partners announced Monday that 211 Mount Airy Road, in Basking Ridge, has been sold for $98.5 million. Rubenstein Partners, L.P., a vertically-integrated real estate investment manager, and Onyx Equities purchased the suburban campus from Avaya for $12.2 million in 2013, according to published reports. The buyer is Virginia-based investment firm Harbor Group International.
“HGI continues to acquire Class A, single tenant suburban office properties in key markets,” said T. Richard Litton, Jr., the president of Harbor Group International, “This recently redeveloped and renovated property boasts a credit tenant in an accessible, convenient suburban office location in proximity to New York City.”
The sale follows an extensive redevelopment of the 306,194, s/f property which included a new façade and upgraded amenity package, and a 16-year, full-building lease with Daiichi Sankyo. Affiliates of Rubenstein and Onyx acquired 211 Mount Airy Road from Avaya in late 2013. Following the acquisition, the partnership implemented a redevelopment plan that modernized the early 1980’s vintage building. In particular, the building’s concrete skin was replaced with a contemporary glass curtain wall system that allows abundant natural light into tenant spaces. The main lobby was also extensively renovated, highlighted by the addition of state-of-the-art video walls. The building now features headquarters-quality amenities, including a full cafeteria, fitness facilities, 127-seat auditorium and conference center. Subsequently, in April 2016, the partnership signed the 16-year, full-building lease with Daiichi Sankyo, Inc.
“Together with Onyx, we were able to create truly unique office product that was ideal for a large tenant desiring a headquarters-quality office campus,” said Stephen Card, Principal and the Regional Director of Mid-Atlantic for Rubenstein Partners. “At Rubenstein, we routinely look to acquire large blocks of quality vacancy in high-performing submarkets, and the 211 Mount Airy Road investment illustrates this thesis successfully playing out.”
“When Onyx and Rubenstein purchased 211 Mt Airy Road and decided to transform it into one of the best suburban office buildings in New Jersey, we were convinced that a great multinational company would identify our commitment to quality,” said DJ Venn, Senior Vice President of Asset Management for Onyx Equities. “We were proud that Daichi Sankyo chose this outstanding asset as its headquarters.”