51 Route 23 South in Riverdale — Courtesy: JLL
By Joshua Burd
The owner of two medical office buildings and a light industrial property in northern New Jersey has put the portfolio on the market, in a newly announced offering by JLL.
The properties include 51 Route 23 South in Riverdale and 135 Kinnelon Road in Kinnelon, which comprise 51,624 square feet of medical office space, and the 74,117-square-foot industrial building at 40 Vreeland Ave. in Totowa. JLL is touting the value-add potential of the buildings and the opportunity to redevelop the Kinnelon site, noting the seller will consider offers to purchase them individually or as multiple properties.
In its offering, the brokerage team said 40 Vreeland is less than a mile from Interstate 80 and within minutes of routes 46 and 23. The property is 83 percent occupied by five tenants and offers in-place cash flow with upside potential to reconfigure underutilized, vacant and month-to-month space to warehouse use.
The building has 23-foot clear ceiling heights and seven dock doors, JLL said, adding that a would-be buyer could expand the warehouse capacity by converting office space to warehouse use. The firm also said that roughly one-third of the space is vacant or month-to-month, while the leases on 50,043 square feet expire in less than two years.
The JLL marketing team includes Jose Cruz, Marc Duval, Jordan Avanzato, Mark Mahasky and Rob Kossar.
Meantime, the brokers noted that the 30,698-square-foot Kinnelon property is 53 percent leased and primarily occupied by month-to-month tenants, providing potential to reposition and lease up the building. The site also offers a redevelopment opportunity to residential or senior living, especially given the borough’s affluent population and lack of townhomes.
The second medical office building, 51 Route 23 South, is 67 percent leased. Summit Medical Group occupies 6,399 square feet as the anchor tenant at the two-story property.
Both buildings were built in 1991.
Mahasky, Cruz, Ben Appel, Michael Oliver, Kevin O’Hearn and Grace Braverman are leading the assignment. Matthew Pizzolato is overseeing financing.
