100 Franklin Square Drive in Somerset — Courtesy: Rhodium Capital Advisors
By Joshua Burd
A real estate investment firm has paid nearly $6 million to acquire a 107,000-square-foot office building in Somerset County, where it now plans to spend another several million on upgrades.
In a news release, Rhodium Capital Advisors announced the acquisition of 100 Franklin Square Drive, a property located in the Somerset section of Franklin. The firm also said that, between contract signing and closing, it renewed in-place tenants on long-term leases and secured several new tenants to boost occupancy from 56 percent to 87 percent at closing.
The tenant roster includes firms in health care, education, insurance, technology and law, Rhodium said. The owner will spend $2.4 million for tenant improvements and leasing commissions for existing tenants and the new tenants, plus another $350,000 on building-wide improvements such as parking lot paving, roof repairs and bathroom and common area upgrades.
The New York-based investor, which focuses on value-add opportunities in multifamily and office, touted 100 Franklin Square’s location near Interstate 287 and its proximity to hotels, conference centers and restaurants.
“This acquisition is further proof of Rhodium’s strength in identifying under-managed assets in prime locations and creating value almost overnight,” said Daniel Shragaei, a managing principal of Rhodium Capital Advisors. “We are excited to continue pursuing this unique strategy for select assets in the metro New York area.”
