44 Whippany Road in Morristown — Courtesy: Marcus Partners
By Joshua Burd
RXR Realty has sold a 230,000-square-foot Morristown office building to a Boston-based real estate investment firm, in a $21.5 million deal brokered by HFF.
HFF represented RXR in the sale of 44 Whippany Road and procured the buyer, an affiliate of Marcus Partners. The firm now plans to start a $7.6 million capital improvement program at the 47 percent-leased property, whose tenants include AON, Cigna and Locke Lord LLP.
Marcus Partners, which made the deal through its Marcus Capital Partners Fund II L.P., now has a property located just off Interstate 287, about a mile from downtown Morristown. In a separate news release, the firm said the planned improvements “will transform the property into an exceptional, high-quality office property,” just minutes from two train stations.
The HFF investment sales team representing the seller was led by Senior Managing Director Jose Cruz, Managing Director Kevin O’Hearn, directors Michael Oliver and Stephen Simonelli, Associate Director Marc Duval. Executive Managing Director Michael Tepedino and Senior Managing Director Andrew Scandalios also provided support.
“44 Whippany is well located within the suburban Morris county market,” Cruz said in a prepared statement. “The property is a great option for tenants that need flexible leasing options in the Western New Jersey submarkets.
“The new owner will be substantially repositioning this building.”
The planned upgrades include site and landscape improvements, building identification enhancements, upgraded entrances, a fully renovated lobby and modernized café, Marcus Partners said. The firm also detailed plans for an expanded conference center, targeted façade upgrades and other improvements to modernize, lighten and brighten the property.
Marcus Partners said it has purchased more 1 million square feet of commercial real estate in New Jersey over the last three and a half years, including both office and life science properties. To date, it has successfully completed about $66 million of redevelopment work at its other New Jersey assets.
“Tenants are increasingly seeking to locate within attractive live-work-play environments, particularly those with strong connectivity and transit accessibility,” David Fiore, head of Marcus Partners’ Metro New York office, said in a prepared statement. “44 Whippany offers these locational benefits and will soon be transformed into the interior office environment today’s top tenants demand — a bright, welcoming, and cheerful environment that simultaneously maximizes natural light, offers modern amenities, and encourages collaboration.”
