225 May St. in Edison — Courtesy: Colliers International
By Joshua Burd
A private equity firm has purchased a 30,000-square-foot medical office building in Edison, under a newly completed transaction by Colliers International.
The buyer, Thomas Park, paid an undisclosed price for the 83 percent leased property at 225 May St., according to the brokerage team. Colliers represented an unnamed seller in the deal, noting that the building is home to five tenants including a health system, a surgery center and a cardio specialty practice.
Kim Kretowicz, a managing director with Colliers health care services group, said the property’s tenancy, location and “consistent history of tenant renewals demanded multiple offers from the crowded pool” of real estate investment trusts, private health care investors and private equity buyers that showed interest.
“At the end of the day, Thomas Park’s sterling track record of owning and operating medical office properties proved to be the perfect fit,” Kretowicz said, later adding: “Medical office investments have been highly favored for the past several years and throughout the pandemic due to their defensive investment qualities. With many investors activating their dry powder, we anticipate this sector will remain strong through 2022.”
The building is located near several major highways, including Interstate 287 and the New Jersey Turnpike.
“This asset has all the right ingredients we look for, from its longstanding cycle-tested tenancy, dense patient base and convenient location,” said Alex Kopicki, Thomas Park’s chief investment officer. “We fully expect this to be the first of many transactions we complete in New Jersey and with Kim Kretowicz and her team.”