The Offices at Bedminster at 500 and 550 Hills Drive in Bedminster — Courtesy: JLL
By Joshua Burd
New York Life Real Estate Investors has sold a two-building, 194,000-square-foot office complex in Bedminster, in a newly announced transaction by JLL.
Brokers with the firm represented the life insurance company and its client in their disposition of The Offices at Bedminster, which comprises 500 and 550 Hills Drive. An affiliate of Northeast Capital Group, which is based in Ramapo, New York, purchased the asset following a recent multimillion-dollar renovation of the complex.
Terms were not disclosed. JLL senior managing directors Jose Cruz and Kevin O’Hearn, senior directors Michael Oliver and Steve Simonelli and Director J.B. Bruno of the firm’s New Jersey capital markets team completed the assignment.
“Despite these very challenging economic times, we are seeing buyers make long-term investment decisions on office assets in the northern and central New Jersey market,” Cruz said. “The quality, location and strong tenant base of the asset were the main reasons for the high level of interest in The Offices at Bedminster.”
Sitting on nearly 16 acres, The Offices at Bedminster sits near the busy intersection of interstates 78 and 287. The complex is also along Route 202/206 at the entrance to the sprawling Hills residential development and across from a Kings-anchored shopping center.
The complex, built in 1988 and 1989, is currently 86 percent leased with a weighted average lease term of about seven years, according to a news release. The buildings are anchored by Peapack-Gladstone Bank and Aerie Pharmaceuticals.
Recent renovations include upgrades to common areas and the addition of a new fitness center and lobby area, JLL said. Additional features include covered executive parking, outdoor courtyard with picnic area, grab-and-go café and fountain pond.
The 550 building is certified on the U.S. Green Building Council’s Leadership in Energy and Environmental Design scale and has a WiredScore Platinum certification, the news release said. The 500 building is Energy Star-certified.
“Getting this deal done during a pandemic was certainly a challenge,” O’Hearn said. “However, New York Life afforded appropriate timing, which resulted in Northeast Capital being able to perform strongly and close at the award price.”