PARSIPPANY, NJ–A dinosaur has awoken in Parsippany, as a decrepit building that had been vacant for 20 years was sold to a company that will refurbish it for industrial flex use.
CBRE Group pulled off the deal for 20 East Halsey Road, completing sale of the 75,000-square-foot property for $3.3 million.
It's another sign of a trend declared by CBRE's Kevin Welsh at NAIOP's recent national industrial conference in Jersey City: Class B industrial is the most preferred property type in the region right now. (See previous story.)
“We're especially excited to see this property come back to life because of its many potential uses,” said Thomas Mallaney of CBRE, who represented GTJ Reit, the buyer in the Parsippany transaction. Mallaney said he had a previous relationship with the seller, a nonprofit organization.
“Once refurbished, the building could hold anything from office space to data centers and could even serve as a warehouse,” he said. "It's not too often that you see a space in such poor condition have the opportunity to make a huge comeback in the market.”
Hartz Mountain Industries is currently reviving the former Panasonic warehouse in The Meadowlands for a new user (see story here), but that building has only been unoccupied for a year and it is part of the larger mixed-use district of Harmon Cove.
The Parsippany building, set on 7.8 acres, was allowed to fall into a complete state of disrepair, according to Mallaney and Susan Branch, who was his partner in marketing the property. Long Island-based GTJ, which owns numerous industrial flex properties in the region, plans to fully refurbish it to accommodate either a single or multiple tenants.
CBRE's Stephen Sander will handle leasing for the property.
The location of the site, at a four-way interchange on Interstate 287, offering high visibility from the roadway for tenants, was a crucial factor to the buyer, according to CBRE.
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