5 Paragon Drive in Montvale — Courtesy: HFF
By Joshua Burd
The owner of a 119,000-square-foot office building in Montvale, which houses the U.S. headquarters of a well-known travel company, has put the building on the market.
Brokers with HFF are marketing the building, 5 Paragon Drive, touting it as a value-add opportunity with a strong existing tenant base. The property is just off Garden State Parkway Exit 172 and is about 71 percent occupied, following some 85,000 square feet of leasing activity over the past two years.
Its anchor tenant, Flight Centre Travel Group, is an Australian travel company with operations in 23 countries, whose brands include Liberty Travel and GOGO Vacations. The company occupies about 51 percent of the property after signing a long-term lease in 2016.
HFF’s capital markets team also noted that the current ownership has invested more than $4 million to create a modern build-out for Flight Centre Travel. The firm touted Bergen County’s history as a hub for large corporations and the new amenities in the surrounding area, including the nearby 231,000-square-foot DiPiero Farm retail center, which is anchored by a Wegmans.
“The continued removal of obsolete office inventory to accommodate more functional uses has provided an additional tailwind to the market,” HFF wrote in its offering materials, citing the pending redevelopment of the former Mercedes-Benz USA headquarters in Montvale. Recent proposals have called for a new mixed-use project at the site, while the former A&P headquarters at 2 Paragon Drive was also razed to clear the way for redevelopment.
HFF also touted Bergen County’s affluent demographics and 5 Paragon Drive’s proximity to Route 17. The two-story building, completed in 1984, sits on 16.5 acres.
The property is also next door to 3 Paragon Drive, a 94,000-square-foot office building that sold last fall for $14 million.
HFF’s Jose Cruz, Kevin O’Hearn, Stephen Simonelli, Michael Oliver and J.B. Bruno are marketing 5 Paragon Drive on behalf of the seller. Gregory Nalbandian is overseeing financing.