KBS Sells Park Avenue at Morris County Office Park in New Jersey for $311M
FLORHAM PARK, N.J. — California-based investment firm KBS has sold Park Avenue at Morris County, a trophy office park in Florham Park for $311 million. The deal marks the highest price for a multi-tenant office building in suburban New Jersey since 2008, according to CBRE, which brokered the deal. The buyer was a New York City-based private investor.
Situated on 135 acres, Park Avenue at Morris County consists of six Class A office buildings totaling just under 1.2 million square feet. The campus, located in Northern New Jersey approximately 20 miles west of Manhattan, was developed in phases between 1989 and 1999. The property also features a 7,000 square-foot private daycare and preschool facility.
During its ownership period, KBS introduced new amenities such as a fitness center with personal training spaces, basketball courts, volleyball courts and a soccer field, as well we service-based amenities like a car wash and a dry cleaner. KBS also upgraded the buildings’ roofs, HVAC systems, elevators and conference centers while adding transportation amenities such as electric car charging stations and shuttle service to nearby public transit lines.
The property was 89 percent occupied at the time of sale.
“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,” says Shannon Hill, senior vice president and asset manager for KBS.
Jeffrey Dunne, Jeremy Neuer, Steve Bardsley, David Gavin, Gene Pride, Travis Langer and Zach McHale of CBRE represented KBS in the transaction.
— Taylor Williams