310 and 322 Route 35 South in Red Bank — Courtesy: Newmark Knight Frank
By Joshua Burd
An insurance company has sold and leased back the majority of a two-building office portfolio in Red Bank, brokers with Newmark Knight Frank announced last week.
The real estate services firm said it represented the seller, Markel Service Inc., in the transactions at 310 and 322 Route 35 South. NKF also represented the buyer, Denholtz Properties, in the $14.8 million acquisition and long-term leaseback.
The complex has served as a headquarters building for Markel since 2002, brokers said. The company will continue to lease 100 percent of 310 Route 35, also known as the South Building, and 22.13 percent of the adjacent North Building, which also has four subtenants and is more than 76 percent leased.
NKF Executive Managing Director Steven M. Schultz, Managing Director Tony D. Georgiev and Managing Director Adam Silver completed the assignment.
“It was a pleasure to work with both Denholtz and Markel on this transaction,” Schultz said. “This property is conveniently located off of highly trafficked Route 35 and supported by a variety of additional transportation networks. The buildings, midway between New York City and Philadelphia, are both the perfect location for Markel to continue doing business and a compelling investment opportunity for Denholtz.”
The three-story South Building, which sits on 3.85 acres, includes amenities such as a fitness center, cafeteria and redundant backup power. The North Building, developed in 2007, is also three stories and houses a shared conference room, auditorium, training room and kitchen.
The acquisition represents the latest addition to Denholtz’s Red Bank portfolio, following its recent move to the borough and its announcement of several projects it has underway.
“We’re excited about the potential of this office portfolio, as it continues our ongoing focus on strategic investments in the Red Bank market,” said Steve Cassidy, president of Denholtz Properties. “The long-term leaseback agreement provides us with a predictable income stream from the South Building and the opportunity to realize additional value in the North Building.”