CBRE Global Investors Continues Growth in Suburban NYC Markets
- Feb 20, 2015
A fund sponsored by CBRE Global Investors has acquired Park 80 West, two Class A office buildings totaling approximately 507,000 square feet in Saddle Brook, N.J., from a joint venture between Pearlmark Real Estate Partners and L&L.
The transaction effectuated an expedient transaction prior to a debt maturity
The CBRE Institutional Properties team of Jeffrey Dunne, Kevin Welsh, Brian Schulz and Frank Maresca represented both parties in the transaction.
“The acquisition of Park 80 West provides CBRE Global Investors with a premier office asset defined by its iconic location at the intersection of I-80 and the Garden State Parkway,” Dunne said in a company release. “CBRE Global Investors demonstrated their ability to quickly understand and overcome challenges, which was critical in meeting the very short closing timeframe required by ownership.”
Park 80 West’s two office buildings each contain an attached parking garage. The property also features recently renovated common areas, manned and roving security, a full-service cafeteria, fitness center, boardroom, dry cleaning service and on-site property management.
Located at the nexus of I-80 and the Garden State Parkway, both Saddle Brook Marriot and Holiday Inn are adjacent to the property, and it sits nearby three regional malls and a variety of dining options and national retailers.
At the time of the sale, the buildings were 73 percent leased to a tenant roster that included several investment-grade companies, including CBRE’s New Jersey headquarters. In the past two decades, only two major tenants have vacated the property and its experienced strong leasing activity of late, with approximately 210,000 square feet of leases completed since January 2013.
According to Cushman & Wakefield’s 2014 Fourth Quarter Northern New Jersey Office Report, the office market saw a 1.2 percentage spike in overall vacancy at the end of last year, due in part to large blocks of space coming online in Bergen County, which saw a 2.8 percent swell in vacancy to an all-time high of 19.7 percent. This abundance also accounted for Class A direct average asking rents to fall 2.6 percent in the County. However, the report does foresee leasing to pick up in 2015.