100 Summit Ave. in Montvale — Courtesy: Savills
By Joshua Burd
A private equity firm has acquired a 127,000-square-foot office complex in Montvale and is now planning to convert it to a nursing home facility, according to brokers with Savills.
The brokerage team on Thursday announced the sale of 100 Summit Ave., the longtime home of Western Union. The buyer, Tryko Partners, paid $5.5 million for the property and is now set to reposition the site thanks in part to its flexible zoning.
Savills Executive Vice President and Rutherford Branch Manager Gregg Najarian brokered the sale alongside corporate managing directors Slava Vaynberg, Nate Brzozowski and Brendan Fisher.
“Savills marketed this property as a repositioning opportunity and, ultimately, the team was able to execute the transaction on behalf of the client in the midst of a pandemic because we identified a creative party to purchase and reimagine the asset,” Najarian said. “In addition, given the site’s broader as-of-right zoning regulations, we were able to increase the buyer pool and attract multiple offers. Ultimately, we selected Tryko as the buyer due to their experience and track record of acquiring similar-type assets throughout the Northeast.”
Savills noted that Western Union occupied the property for nearly 15 years, is consolidating its national real estate footprint and plans to relocate to a new, smaller office in the immediate area. The sale of the building is reflective of northern New Jersey’s commercial real estate market, the firm said, with vacancy continuing to rise and many former office buildings now emerging as redevelopment opportunities.
“It’s no secret that New Jersey is overbuilt in terms of older office product,” Najarian said. “It presents a unique opportunity for savvy owners, like Western Union, to get creative with their real estate decisions, especially when the demographics are strong in a highly desirable area such as northern Bergen County, with its excellent location and quality of life. The market conditions also allowed for a very favorable deal for all parties involved.”