KBS has sold Woodbridge Corporate Plaza, a six-building Class A office complex in Iselin, New Jersey to Ramapo, New York based Northeast Capital Group for $88 million.
Newmark, a global commercial real estate services firm, directed the sale on behalf of KBS.
“The New Jersey office market is home to a diverse roster of Fortune 500 companies and tenants who are drawn to a highly accessible, regional location. Woodbridge Corporate Plaza is defined by its proximity to the intersections of I-95, I-278 and Route 1 with exceptional mass transit connectivity via Amtrak, New Jersey Transit and the Metropark Station,” says Marc DeLuca, Eastern regional president for KBS.
Deluca notes the sale represents investors’ robust appetite for top-quality office properties in prime locations throughout the country despite the COVID-19 pandemic.
“The office market is poised for recovery as we move out of this health and economic crisis,” says DeLuca. “We’ve heard from numerous tenants that they are eager to return to the workplace after many months of working remotely. During the shutdown, productivity has begun to dip as people have grown weary of working from home. Companies and their teams are looking forward to coming back to the office safely where they can do their best collaborative and creative work. Properties like Woodbridge Corporate Plaza represent the type of superior-quality, well-amenitized space these firms are seeking as they navigate their way back to the office.”
Newmark’s Executive Managing Director Kevin Welsh, Managing Director Brian Schulz, Associate Jason Emrani, and Transaction Manager Maria Betancourt, along with support from Jamie Drummond, served as KBS’ exclusive advisors and representatives for the sale of Woodbridge Corporate Plaza.
“Woodbridge Corporate Plaza has seen close to a half million square feet of leasing velocity since January 2017,” says Welsh of Newmark. “The property is 90% leased to a diverse base of 64 tenants with investment-grade anchors, providing stable cash flow and staggered rollover. Moreover, this asset offers Northeast Capital Group a secure income stream with strong cash-on-cash returns at an attractive basis. The property’s dynamic location and market-leading leasing velocity make it a rare investment opportunity in the area.”
KBS originally purchased the 629,189 square-foot business park in 2005, completing a multimillion-dollar renovation that included construction of all new corridors and restrooms, upgrading of flooring and lighting, installation of new entrance doors and new signage opportunities for tenants.
The property provides a host of sought-after amenities, including a new 6,000 square-foot fitness center, a full-service café and caterer, on-site management office and shuttle service to the Metropark transit hub, according Stephen Close, asset manager for Woodbridge Corporate Plaza and senior vice president of KBS.
“Northeast Capital Group recognized an extraordinary opportunity to acquire one of Metropark’s most desirable office parks,” says Close. “The renovations KBS completed at this property make this well-located asset even more attractive to existing and prospective tenants. This business park is an excellent addition to the buyer’s portfolio.”
Attorneys Bruce Fischer, Howard Chu and paralegal, Amanda Kennedy, of global law firm Greenberg Traurig, LLP’s Orange County office, together with attorney Steven Fleissig in Greenberg’s New Jersey office, represented KBS as legal counsel in the disposition.
“We enjoyed representing KBS in the successful disposition of Woodbridge Corporate Plaza,” said Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County Office, who led the Greenberg Traurig team.