A 389,000-square-foot Class A office property in Parsippany will go up for auction Oct. 7-8, Colliers announced Tuesday.
The property, 2 Gatehall Drive, is located within a master-planned 58-acre corporate campus in the heart of Parsippany. The property has undergone nearly $6 million in capital investments.
A Colliers team led by Vice Chair Jacklene Chesler, Vice President Patrick Norris, associate Jake Moss and Director Philippe Jomphe feels the building’s modern three-story atrium, lifestyle-focused amenities and energy-efficient infrastructure — including a 600-kilowatt backup generator, a 1.52-megawatt solar array and a state-of-the-art 24/7 safety and security system — make it an ideal choice for forward-thinking companies.
Originally designed to support Big Data and technology operations, the property is equipped with enhanced floor loads to accommodate high-tech equipment, making it a perfect fit for companies that require robust infrastructure, Colliers officials said.
“The property offers a unique opportunity for investors seeking both stability and growth,” Chesler said. “The property, currently 30% leased to credit tenants, offers positive cash flow from its in-place leases. This provides a value-add opportunity to significantly increase net operating income through the lease-up of the remaining vacant space, making this an attractive asset in today’s current market.”
The property is listed on Ten-X, the world’s largest online commercial real estate exchange, for auction from Oct. 7-8.
Chesler said Colliers is confident the building will draw buyers.
“In two weeks out to market, we have seen interest from office investors, developers and users,” she said. “To have an asset of this quality being offered for sale through an auction process is pulling different buyer types that know this will trade at a favorable basis and well below replacement costs.
“Additionally, there is a draw for the property due to the surrounding market fundamentals. This area has transformed over the years and is surrounded by new and pipeline development projects that have and continue to deliver industrial, multifamily and retail projects. This is why some of the most prominent owners and developers have invested in Parsippany.”
Located at the intersection of Routes 10 and 202, and only minutes away from Interstates 80 and 287, the property is surrounded by a vibrant, amenity-rich area that is witnessing substantial growth and development.
Among the latest developments in the area are the Whole Foods-anchored Parsippany Marketplace, PARQ Parsippany, the District at 15fifteen and the upcoming Topgolf entertainment complex.
Recent data highlights the strength of Parsippany’s commercial and residential growth. It’s estimated over 2.5 million square feet of office space is coming offline, with properties being repositioned for industrial and multifamily use. Additionally, over 3,000 new and scheduled residential units are planned, along with another estimated 500,000 square feet of proposed and approved industrial conversions. This evolving landscape offers significant opportunities for businesses and investors alike.
