299 Cherry Hill Road in Parsippany — Courtesy: CBRE
By Joshua Burd
An investor has purchased an 85,000-square-foot office building in Parsippany for $4.9 million, under a deal arranged by CBRE.
Brokers with the firm represented an undisclosed seller in the transaction at 299 Cherry Hill Road, which is minutes from the crossroads of interstates 80 and 287. According to the investment sales team, an out-of-town buyer made the deal with an eye toward upside that will come with leasing up the building.
CBRE noted that it brokered the sale of a similar-sized office property at 10 Lanidex Plaza West, also in Parsippany, last year for $9 million.
“Although the office sector has suffered during the pandemic, this sale demonstrates that well-positioned and well-located properties are still highly sought-after,” CBRE’s Charles Berger said. “We were able to maximize the value of the asset through a competitive process with over 15 offers and helped bring about a quick and efficient closing for our client.”
Berger brokered the sale alongside Mark Silverman and Elli Klapper, working in conjunction with CBRE’s Thomas Mallaney. They noted that the building, which sits on 5.86 acres, is currently 60 percent occupied by several long-term office tenants, allowing for a significant increase of the rent roll through further lease-up.
The three-story property is minutes from a Whole Foods location and several new multifamily developments, with corporate neighbors including Avis Budget Group, GAF Corp., Reckitt Benckiser and others.
“Our team has been extremely active throughout the region in commercial office sales, as well as conversions to alternative uses such as industrial and multifamily,” Berger said.