KBS, a commercial real estate owner based in Newport Beach, California, announced on Tuesday the $311 million sale of Park Avenue at Morris County, a “trophy” office park in Florham Park.
The six-building, 1.19 million-square-foot property at 100-600 Campus Drive, owned by KBS Real Estate Investment Trust II, was sold to an undisclosed private buyer, KBS said.
KBS said during its ownership of the asset, it implemented a multimillion-dollar capital improvement plan, resulting in occupancy hitting 89%. Mar DeLuca, regional president, eastern U.S., for KBS, said the firm added modern amenities for today’s typical office user, including a new fitness center, lobbies, roofs, HVAC units, updated elevators, a new conference center, and on-site concierge and security service.
“By incorporating a broad spectrum of desirable features into this preeminent office park, we were successful in significantly driving new leases and renewals at Park Avenue at Morris County,” DeLuca said.
KBS also said it upgraded the buildings’ cafeteria, installed a coffee and wine bar in the lobby, and created a food-delivery service with a mobile app for quick access to nearby food options. Additional amenities include green energy connectivity, electric car charging stations, shuttle services, a soccer field, a shoe-shine service, car-wash service, dry-cleaning service, walking and jogging trails, and covered parking.
“These improvements added tremendous value to the asset,” Shannon Hill, senior vice president and asset manager for KBS, said. “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.”
CBRE‘s Jeffrey Dunne and Jeremy Neuer represented both KBS and the buyer in the deal.
“KBS’ decision to acquire this premier Northern New Jersey office campus was due in part to the strong absorption and tenant demand in the area,” Dunne said. “The average lease term for tenants at this property is 10 years, which indicates a high level of satisfaction with the space and the landlord.”
Greenberg Traurig LLP‘s Bruce Fischer, Howard Chu and Steven Fleissig served as legal counsel to KBS.
“It has been very exciting to watch how this project has been transformed since its purchase,” Fischer, chair of the West Coast Real Estate Practice and co-managing shareholder of the Orange County Office, said.