PARSIPPANY, NJ-Cole Corporate Income Trust has acquired the 150,500-square-foot building at 299 Jefferson Road where chemical Evonik Degussa has 11 years remaining on its current lease. The price was $32.4 million.
Robert Micera, Cole's chief investment officer for office and industrial, tells GlobeSt.com that even though the Class A vacancy rate remains high in Parsippany, his company sees “supply constraint” for investments like this one.
“This is an important corporate headquarters in a building that is highly visible in an area where there are a lot of other major corporate users,” icera says. “Plus, the building was renovated only two years ago.”
Vision Equities completed renovations of the building, originally put up in 1985, and Evonik Degussa relocated at the end of 2011 from its previous long-term office at Morris Corporate Center in Parsippany.
Micera said that his company invests primarily in strategically-located, single-tenant, corporate properties that are leased to creditworthy tenants under long-term net leases.
Cole also recently acquired the Bridgewater office that is leased long-term to Sanofi-Aventis, the pharmaceutical company. Sanofi has vacated its adjacent campus, which has been acquired for redevelopment by Advance Realty.
“Northern New Jersey is a leading market for corporate facilities because of its proximity to New York City, transportation infrastructure, strong economic base and large population within a 30-minute commute,” said Micera.
The trust's investment now includes 25 wholly-owned properties in 14 states, totaling approximately 4.4 million square feet with a value of approximately $630.1 million. The overall weighted average credit rating of the rated tenants in the portfolio is A-, and the weighted average remaining lease term is 10.7 years, according to Micera.
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