299 Cherry Hill Road in Parsippany — File photo/Courtesy: Lincoln Property Co.
By Joshua Burd
An investment group has sold a nearly 80,000-square-foot office building in Parsippany for $10.2 million, in a newly announced deal by CBRE.
Brokers say the seller, a partnership led by Red River Asset Management, drew strong interest from would-be buyers thanks in part to a successful repositioning plan. That translated to multiple offers for 299 Cherry Hill Road, including that of the private investor that ultimately acquired the 79,766-square-foot building off Interstate 80.
“The seller made a significant investment in upgrading the property since I helped them acquire it three years ago and we were able to sell it for more than double its original cost,” CBRE’s Charles Berger said. “The seller had converted over 60 percent of the building to medical tenancy, and new ownership plans to lease the remaining 1,900 square feet of office space to stabilize the property and potentially convert more of the building to medical space — an office segment that has experienced tremendous growth over the past few years.”
Berger and CBRE’s Thomas Mallaney represented the seller, a partnership of local investors led by a sponsorship team of Dan Dilmanian, Farshad Kalaty, Bruce Stern and Mike Taylor. They also procured the buyer, citing the appeal of the building’s location and upgrades such as a redesigned exterior façade, new signage on Cherry Hill Road, a new electronic tenant directory and LED lighting in the main lobby.
The property also has a new tenant amenity center, which features a grab-and-go food service, a conference and training room and a smaller huddle room.
“Despite a challenging environment in the capital markets sector, we were able to achieve opportunistic-level returns for our investors,” said Stern, managing partner of Red River Asset Management. “Hats off to Charles Berger and CBRE for generating many qualified buyers in a difficult sales climate.”
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