Office Buildings
*ITEM #3011 *
Xxxxx xxxxxx CORPORATE CENTER
Price:$16M + Buyer pays 3% commission.
THE OFFERING
xxxxx xxxxxx Corporate Center is a four-story multi-tenant office building totaling ±117,492 square feet and located at xxx,, Morris County, New Jersey == just 1.5 miles from Exit 39A on I-287.
The Property is situated on an expansive 14.06 acres of land (two separate tax parcels) and includes 446 parking spaces.
xxxx xxxx Corporate Center features unique floor plates that permit smaller suite sizes, which cater to a different pool of tenants than nearby office buildings. As a result, the Property is outperforming the market at ±91% occupancy. In addition to the leasing benefit, the small suite sizes provide a risk diversification advantage. Of the 21 current tenants, only one (The State of New Jersey, Moody’s: A1, Lease Expiration Date: 7/31/2030) accounts for more than 10% of total building area.
The property has benefited from ownership’s $1.8 million capital expenditure program which commenced in 2018. Recent renovations have included upgrades to the common areas and the Property’s various amenities and replacement of various mechanical systems, including the elevator. These improvements have driven leasing activity and assisted in tenant retention.
The Property is less than three (3) miles from Downtown Morristown and approximately 30 miles west of New York City. Downtown Morristown has experienced tremendous growth and transformation in recent years and now boasts some of the highest market office ($46/SF average asking rent) and residential rents ($3,070/month) in New Jersey. Major corporations including Deloitte, Valley National Bank and Sanofi have recently relocated to Morristown, capitalizing on its 1.2 million SF of Class A office product and abundance of amenities. With a median household income of over $117,000, Morris County is the 14 wealthiest of 3,144 U.S. counties, and the second wealthiest in New Jersey. 33 Fortune 500 businesses have headquarters, offices or major facilities in Morris County.
INVESTMENT HIGHLIGHTS
• DIVERSE TENANT MIX
There are 21 tenants with no tenant occupying more than 17% of total area and only one tenant occupying more than 10% of total building area;
• LEASE EXPIRATION DATES
Current lease expiration dates are staggered between 2025 and 2030 with ±38% of the space leased until at least January 2030;
• STRATEGIC FLOOR PLATES
The Property’s strategically manageable floor plates accommodate a variety of suite sizes with five (5) suites under 2,000 SF and 16 suites of under 4,000 SF. This is a major competitive advantage as the peer properties have much larger/deeper floor plates that cannot accommodate the needs of smaller tenants;
• STRONG STATE GOVT. TENANCIES
• MEDICAL OPPORTUNITY
The Property is located near three (3) major hospitals.
Future ownership may choose to capitalize on the Property’s proximity to major medical systems and increase the ratio of medical tenants over time;
• CLASS B RENTAL RATE WITH CLASS A
AMENITY PACKAGE
The Property features a full-service cafeteria, fitness center with shower facilities and a conference center.
Ownership has invested substantially in building and mechanical system improvements since acquisition in late 2018.
The Property’s weighted average rent is currently at a very competitive rate of $22.50/SF.
There are four (4) vacant suites totaling ±11,121 SF. Two of these suites are turn-key — as both have been newly renovated with private windowed offices, conference rooms, new carpeting and kitchens.
• HIGHLY AFFLUENT LOCATION
ADJACENT TO MORRISTOWN
The Property is adjacent to I-287 and just less than two miles from the Morristown train station in downtown Morristown which has experienced tremendous growth and transformation in recent years.
Morris County has an elite demographic profile as it is the 14th wealthiest of 3,144 U.S. counties, has the highest average rent in Northern New Jersey and is home to numerous Fortune 500 companies.
Address:
xxx xxxxxxxxxxx
Morris County, NJ
Year Built:
1980
Square Feet:
±117,492
Stories:
4 (serviced by 3 elevators)
Number of Tenants:
21
WALT:
3.9 Years
In
Parking Ratio:
3.8/1,000 SF
Lot Area:
14.06 acres (2 Lots)
Occupancy:
90.5%
Cap Rate:
9.33%
Price:$16M+3% Buyer's fee