90 East Halsey Road in Parsippany — Courtesy: JLL
By Joshua Burd
The owner of a nearly 100,000-square-foot office building in Parsippany is seeking a buyer for the property, where brokers are touting strong leasing momentum after a recent update.
According to JLL, which is representing the would-be seller, occupancy at 90 East Halsey Road is just over 90 percent with a mix of traditional tenants and coworking suites. That marks a 67 percent increase since January 2018, thanks to a $4.3 million renovation that included upgraded tenant suites, HVAC, lighting, restrooms, energy management and elevators.
The property generates an in-place net operating income of about $1.25 million, JLL said.
“The building’s ability to accommodate smaller tenants, many on an as-is basis or with minimal (tenant improvements), has spurred leasing activity and increased the NOI without a significant amount being spent in capital,” the brokerage team wrote. The firm added that the three-story building, which has an atrium lobby, a full-service cafeteria and 357 surface parking spaces, is less than a quarter-mile from Interstate 287 and less than two miles from Interstate 80.
JLL’s Jose Cruz, Jeremy Neuer, Bradley Wachenfeld and Pranav Patel are leading the marketing effort alongside Michael Lachs of the firm’s financing unit. In announcing the offering, they also pointed to the long-awaited efforts to right-size the township’s supply of commercial space.
“The Parsippany office submarket is rapidly evolving, with over 1.5 million square feet of obsolete office space being converted to other uses including residential, industrial and mixed use,” JLL wrote, referring to several ongoing redevelopment projects.