Continental Plaza in Hackensack — Courtesy: Colliers International
By Joshua Burd
The owners of a well-known office complex in Hackensack have made $15 million in upgrades, driving more than 100,000 square feet in leasing activity over the past 18 months.
The firms, Capstone Realty Group and JD Cos., acquired the three-building, 650,000-square-foot property known as Continental Plaza in September 2016. Since then, they have completed a host of interior and exterior renovations, ranging from redesigned lobbies and touch-screen elevators to a new fitness center and executive conference spaces.
The improvements have seemingly paid dividends for the trio of office towers.
“The $15 million improvement program has been well-received by Continental Plaza tenants and is further proof of our core strategy of acquiring well-located high-profile properties and adding value,” said Rob Friedberg of Capstone Realty Group. “The new fitness center, food service and collaborative workspace are matched by glass curtain wall offices that feature spectacular unobstructed views of the New York City skyline and northern New Jersey.”
The buildings, which include 401, 411 and 433 Hackensack Ave., are a familiar sight to drivers on Route 4. They were originally developed in the early 1970s by James D’Agostino Sr., whose firm reportedly sold the property in 1981.
D’Agostino’s son and grandson are part of the venture that now owns the property. Following a foreclosure in 2012, Capstone and JD Cos. paid $63 million in 2016 to acquire the complex from a special servicer and pledged to spend millions on upgrades.
At the time of the deal, brokers with Colliers International said the complex was 72 percent leased. On Thursday, Capstone and JD Cos. said occupancy at Continental Plaza has risen 15 percent as a result of 100,000 square feet in new activity.
“My grandfather would be proud to see the rebirth of the towers,” said James D’Agostino, chief financial and operating officer of JD Cos. “The many new features pay homage to his pioneering spirit.”
Those features also include new LED lighting, HVAC systems, interior glass walls, new lobby landings and quick purchase cafés. In addition, the owners have added two private dining rooms and new exterior seating, among several other improvements.
They also touted the complex’s location across from Riverside Square Mall and proximity to the Bergen County courthouse, mass transit and Hackensack University Medical Center.
“Continental Plaza remains one of Capstone’s best value-add suburban office deals,” said Mitchell Adelstein, who leads the firm with Friedberg and Brad Gilman. “Our business plan to restore Continental Plaza to be the premier Bergen County office complex continues to take shape.”
Capstone also floated the idea of relocating existing tenants and consolidating some of the smaller spaces throughout the complex in order to create blocks of contiguous space for a larger user. The owners have retained MRH as the property’s leasing agent.
“The Continental Plaza complex is gaining great momentum,” Gillman said. “New tenants are very pleased with the build-outs that have been provided to them.”
