Onyx, Rubenstein JV Grabs 282 KSF Office Building in Central NJ
- Oct 14, 2013
In a joint venture, Onyx Equities, L.L.C. and Rubenstein Partners bought 211 Mount Airy Road, a 282,000-square-foot Class A office building in Basking Ridge, N.J.
The seller, business communications provider Avaya, has owned the property since 2001. As part of the deal, Avayaand will lease back 135,000 square feet, and new ownership will have maximum leasing flexibility to market the asset to both full and partial tenants, according to a news release.
Situated on 52 acres in central New Jersey, 211 Mount Airy Road is off of major highway I-287 and close to I-78.
“We view this as a strategic opportunity to acquire a meticulously maintained, headquarter quality asset,” said Stephen Sullivan, Onyx senior vice president of Investments in a news release. “Upon completion of our capital improvement program, 211 Mount Airy Road will offer prospective tenants the highest quality product with an outstanding amenity packagr at very competitive rental rates.”
The property includes a cafeteria, fitness center, conference facility and an auditorium. The new owners intend on repositioning the building by investing a good chunk of change in capital, such as improvement to the building’s facade, expanding window lines, and upgrading the signage, lobby, cafeteria, bathrooms and amenity space.
“This acquisition is an exciting opportunity to leverage our experience as an owner-operator of office assets to utilize our fully integrated platform in combination with a top-tier operating partner in Onyx, with whom we have been attempting to partner with for several years,” added David Rubenstein, senior managing director of Rubenstein Partners.
According to a September 2013 Cassidy Turley Economic & Commercial Real Estate Outlook report, the office sector is steadily trending up since the recession, with office leasing up by 23 percent in the Garden State region.