KBS Trades 1.2M SF Florham Park Office Complex for $311M
KBS Real Estate Investment Trust II sold the complex to an unidentified private buyer. CBRE, which represented KBS in the transaction, identified the new owner as a private New York City-based investor backed by offshore capital.
FLORHAM PARK, NJ—KBS of Newport Beach, CA has sold its six-building, 1.19-million-square-foot Park Avenue at Morris County office complex here in a deal valued at $311 million.
KBS Real Estate Investment Trust II sold the complex to an unidentified private buyer. CBRE, which represented KBS in the transaction, identified the new owner as a private New York City-based investor backed by offshore capital.
CBRE said the deal is the largest suburban, multitenant office sale in New Jersey since 2008. A team that included Jeffrey Dunne, Jeremy Neuer, Steve Bardsley, David Gavin, Gene Pride, Travis Langer and Zach McHale of CBRE Institutional Properties represented KBS and also procured the buyer.
Park Avenue at Morris County is located at 100-600 Campus Drive at a 135- acre site and includes a seventh building which houses The Goddard School. The Park Avenue at Morris County complex was primarily developed between 1989 and 1999.
During its ownership of the Northern New Jersey property, KBS implemented a multi-million-dollar improvement plan, bringing occupancy up to 89%.
Marc DeLuca, regional president, Eastern United States for KBS, says, “By incorporating a broad spectrum of desirable features into this preeminent office park, we were successful in significantly driving new leases and renewals at Park Avenue at Morris County.”
As part of its improvement plan, KBS added a fitness facility with indoor and outdoor spaces and personal training, basketball and volleyball courts, a soccer field, modernized lobbies particularly in 100 Campus Drive which serves as the hub for the park’s amenities, new roofs and HVAC units, updated elevators, a conference center and a dedicated on-site concierge and security service.
KBS also upgraded the buildings’ cafeterias, installed a coffee and wine bar in the lobby, and instituted a food-delivery service as well as an interactive mobile app that allows tenants easy access to nearby food options.
In addition, KBS added transportation amenities including electric car-charging stations and a proprietary dual shuttle service for tenants. Additional amenities KBS instituted at the property include a shoe-shine service, car-wash service, dry-cleaning service, walking and jogging trails and covered parking.
Bruce Fischer, Howard Chu, and Steven Fleissig of global law firm Greenberg Traurig, LLP represented KBS as legal counsel on the sale.