"KBS now fully controls all of Park Avenue at Morris," confirms Shannon Hill, KBS senior vice president and director of acquisitions. "We're very happy to have been able to do this deal, especially in the face of a lot of uncertainty in the credit markets. I think it's a tribute to the KBS brand."
Altogether, the class A campus traded for a combined $365 million, or about $325 per sf. In both phases of the transaction, KBS was represented in-house, and seller JP Morgan Chase was represented by Jeffrey Dunne, Kevin Welsh and David Gavin of CB Richard Ellis' New York institutional group in collaboration with Samuel Buckley of CB Richard Ellis' Saddle Brook office.
The second closing involved four buildings totaling nearly 565,000 sf, which commanded $184.3 million, or just more than $326 per sf. The four, 300 Campus Dr. (101,500 sf), 400 Campus Dr. (183,000 sf), 500 Campus Dr. (181,000 sf) and 600 Campus Dr. (99,000 sf), were 99% leased at the time of closing.
The first closing on Sept. 17, meanwhile, involved the 100 Campus Dr. and 200 Campus Dr. buildings totaling about 559,000 sf. The pair went for $180.7 million, or just more than $323 per sf.
Located in the Essex/Eastern Morris County submarket, Park Avenue at Morris County is located at the Columbia Turnpike exit of Route 24. It's adjacent to the Green at Florham Park, the master-planned redevelopment of the former ExxonMobil research campus that includes the new $75-million headquarters and training facility of the New York Jets. Limited availabilities within the complex are listed with asking prices in the $36 per sf range.
The acquisition is the second in New Jersey by KBS REIT II since its initial public offering in April. In July, the fund picked up the 135,000-sf 120 Mountain View Corporate Center in Basking Ridge for $30 million.
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