Cole Real Estates spends $53 million on Class A office space in Parsippany, New Jersey
It has recently been revealed that Cole Real Estates has spent $53 million on a 176,000-square foot, Class A building at 8 Sylvan Way in Parsippany, New Jersey.
The building, previously owned by The Hampshire Companies, has an additional remaining twelve years on its occupancy lease, as well as two five-year renewals and currently serves as the headquarters of global pharmaceutical firm, The Medicine Company.
Cole Real Estates’ Chief Investment Officer, Robert Micera, says, “with the location of the property, long remaining lease term, scheduled rent increases and desirable corporate headquarters, this acquisition corresponds with our overall conservative, disciplined investment strategy. The Morris County, New Jersey, office submarket boasts great fundamentals, considering its strong economic base and educated workforce.”
According to Cushman & Wakefield, New Jersey has the highest year-end total since the start of the recession, having leased 5.5 million square feet within 2011, and improved on transactions in 2012 by nearly 25%.
The building is located in the prestigious Mack-Cali Business Park, a leading location for anyone looking to rent office space in New Jersey. It was built in 1979 and developed in 2008 to transform it into Class A office space.
Managing Director of Cushman & Wakefield’s New Jersey office, Gualbero Medina, is optimistic about the state of affairs in New Jersey: “The rise in leasing activity from 2010 to 2011 demonstrates that the recovery truly has begun in Northern New Jersey. Low rental rates will further motivate tenants looking for space, and vacancy rates should begin to gradually decline over time as a result.”