Wall Street Journal

Samsung Electronics America Inc. just signed for 193,000 square feet in an office building here for its North American headquarters. Earlier this year, the 235,000-square-foot building at 85 Challenger Rd. was purchased by KABR Real Estate Investment Partners LLC, which had taken control of the distressed property.

The price KABR paid for the then-empty property was about $10.5 million, or about $44 a square foot. The average price of comparable office buildings sold near the peak of the market in 2007 was about $200 a square foot, according to Real Capital Analytics, a New York real-estate research firm.Paramus-based KABR said it leased the property to Samsung for about $20 a square foot annually, according to the Journal. That is well below the East Bergen County submarket's average annual asking rent of about $31 a square foot for class A property, according to Studley. On top of that, Samsung got more than $40 a square foot in tenant-improvement costs, above the average of about $30 in the market, according to Kenneth Pasternak, a principal in KABRTo read the entire Journal article, click here.