In the office segment there has been plenty of news regarding Class A assets. Companies have been flocking towards upgraded space. Landlords have made significant capital expenditures to their buildings to attract and retain these tenants. We have seen parking decks being built, investments to achieve LEED certification and the addition of upgraded amenities, such as cafés, fitness facilities, day care centers, and shuttles to mass transit. In the midst of these discussions, the Class B building seems to be getting lost. Class B office buildings do not have all of the bells and whistles of their Class A counterparts. However, this has not stopped them from experiencing a resurgence over the last few years. Current vacancy of Class B office space in the Northern New Jersey market is 13.4 percent. The vacancy rate has seen a steady decline from 15 percent at the end of 2014. The asking rents in the market average around $21.50 based on a gross number. The absorption of space over the last two years has been the best we have seen in more than 10 years. According to CoStar, 1.1 million square feet of Class B office space was leased in Northern New Jersey …
TOTOWA, N.J. — HFF has arranged $12.2 million in construction financing for the conversion of a light industrial building into a 1,246-unit self-storage facility in Totowa. The developer and borrower is a joint venture between Tulfra Real Estate and The Hampshire Cos. M&T Bank provided the loan. Located at 930 N. Riverview Drive, the renovated facility will feature 1,235 climate- and 11 non-climate controlled units. Jon Mikula and Michael Klein of HFF represented the borrower in the financing transaction.
ATLANTIC CITY, N.J. — Starkman Realty Group has arranged the sale of Best of Life Park Apartments, a seniors housing property located in Atlantic City. Radiant Property Management acquired the property from a non-profit entity for $5 million. The 14-story building features 208 units and 73 parking spaces. Jason Starkman of Starkman Realty Group represented the seller in the transaction.
ROSELAND, N.J. — M&T Bank has closed a $44 million loan for affiliates of Mountain Development and Square Mile Capital Management to complete building renovations and tenant improvements for an office building located at 56 Livingston Ave. in Roseland. Improvements for the 434,000-square-foot building include interior tenant space design work, a new and larger fitness center, a redesigned cafeteria and construction of an exterior lounge. Current tenants include Lowenstein Sandler, Connell Foley and Brown & Brown.
NEWARK, N.J. — SJP Properties and Matrix Development have completed the sale of Two Riverfront Plaza, a 12-story office building located in Newark. An international entity advised by Arch Street Capital Advisors acquired the property for an undisclosed price. The 337,500-square-foot property is fully leased to Panasonic Corp. of North America on a long-term lease. The building was developed in 2013 as Panasonic’s U.S. headquarters. Jeffrey Dunne, Darcy Stacom, Kevin Welsh, Brian Scott and Brian Schulz of CBRE Institutional Properties, in collaboration with Dudley Ryan of CBRE’s East Brunswick, N.J., office, represented the sellers in the deal.
Carter Validus Mission Critical REIT II Acquires 89,000 SF Medical Building in New Jersey for $63.6M
MARLTON, N.J. — Carter Validus Mission Critical REIT II Inc. has acquired Select Medical Rehabilitation Facility in Marlton for $63.6 million. Built in 1995, the three-story rehabilitation building offers 89,000 rental square feet and is net leased to Kessler Institute for Rehabilitation Inc., a subsidiary of Select Medical Holdings Corp. The tenant offers a variety of services including inpatient physical, occupational, speech and recreational therapy and outpatient aquatic therapy, prosthetic training, lymphedema management, balance rehabilitation and vestibular therapy. The name of the seller was not released.
METUCHEN, N.J. — Alfred Sanzari Enterprises has purchased Greenway Village, a newly constructed apartment complex located in Metuchen. Greenway Village LLC and Aros Investments LLC sold the 49-unit property for an undisclosed price. Built in 2016, the property features one-bedroom apartments with nine-foot ceilings, recessed lighting, hardwood flooring and crown molding. Additionally, each unit features a washer/dryer, walk-in closets and individually controlled heat and air conditioning. Lauren Rose Federgreen of Rose Real Estate LLC represented the buyer and sellers in the deal.
BRIDGEWATER, N.J. — Regency Centers Corp. will develop Chimney Rock, a ground-up retail property in Bridgewater. The $70 million development will feature 218,000 square feet of retail space, anchored by Somerset County’s first Whole Foods Market. Additional retailers will include Nordstrom Rack, Saks Off 5th, Ulta and The Container Store. Construction is underway, with completion slated for summer 2018.
ROSELAND, N.J. — The law firm of Connell Foley is relocating its headquarters to 71,000 square feet of office space at 56 at Roseland, an office building located at 56 Livingston Ave. in Roseland. Mountain Development Corp. and Square Mile Capital Management own the property. Connell Foley is relocating its New Jersey headquarters from a nearby location in Roseland and will occupy space on the first and second floors starting in late spring 2017. Other tenants at the property include Lowenstein Sandler LLP and Brown & Brown. Newmark Grubb Knight Frank is the leasing agent for the building.
NORWICH, CONN. — O,R&L Commercial has brokered the sale of Briar Hill Plaza, a retail strip center located at 201 Salem Turnpike in Norwich. Easter Seals Goodwill Industries acquired the property from Suncrest LLC for $4.3 million. Built in 2008, the 22,600-square-foot property is anchored by Goodwill. Tim Mahon of O,R&L Commercial represented the seller and procured the buyer in deal.