www.marejournal.com S hopping C enters N ew J ersey S potlight N orthern Five interconnected, multi-storied buildings on 1.84 acres Schein and Fulton of Team Resources sells 200,000 s/f in Dover, NJ N ORTHERN, NJ — Team Resources (Team) closes two M id A tlantic
Real Estate Journal — New Jersey — June 9 - 22, 2017 — 3B
portion of the former textile & clothing manufacturing com- plex into a mixed use property consisting of both residential and commercial components,” said Ed Schein, senior vice president. Alex Rosenberg , Sales as- sociate, along with David Can- tor , CEO and Greg Sholom , president, represented Moll- nick Realty as well as Family Adult Day Care, LLC in a 10 year lease transaction. The 12,000 s/f building, is located at 455 Meadow Lane in Carl- stadt, NJ, leased at an average of $10.00 psf. “The new tenant had been seeking a property that could be converted seam- lessly into an adult day care center. Finding the balance between size, parking and lo- cation was paramount and 455 Meadow Lane satisfied these needs,” said Alex Rosenberg. n service cafeteria, fitness cen- ter and conference area, the once-vacant property is now 82.3% leased by tenants such as Connell Foley, Lowenstein Sandler and Brown & Brown. Taking another approach, “Bell Works,” the rebranded and re- developed 2 million s/f former Bell Labs building in Holmdel, will be seeing an added 75,000 s/f of retail space and a 250-key hotel to help to create a mixed- use urban environment in the suburbs. The property has seen 514,445 s/f of leasing activity since its renovation, includ- ing major leases with iCIMs, WorkWave and Jersey Central Power & Light. Adaptive reuse projects such as these are recycling and repositioning land sites, and effectively “pruning” the office inventory, as obsolete build- ings are replaced by new office buildings or other land uses such as residential properties. This pruning is making the market on average newer and less suburban, which in turn is helping to lower availability. n
deals first week of May. Deal #1: Ron Sholom represented 143 Grand St., LLC., in its recent purchase of 55 Shep- herds Lane in Totowa, NJ. The 172,600 +/- s/f property is con- veniently located near RteS. 80 & 46, and was recently renovated by its former owner. United Realty Advisors, John Friedland represented the seller, Shepherds 55 SG, LLC. “The purchaser had been looking for a building that would both accommodate his need for space and satisfy a 1031 exchange requirement. Shepherds Lane accomplished both of these goals. In addi- tion, half the building is leased providing income as well as Rutherford, NJ — Newmark Grubb Knight Frank (NGKF) has found that the Northern New Jersey office market’s stubbornly high availability rate is beginning to decrease, as obsolete buildings in secondary suburban loca- tions are removed from inven- tory due to redevelopment. In a recently released white paper, NGKF researchmanager Mark Russo reported there is more than 3.9 million s/f of recent and planned office building demolition and adaptive reuse projects in the region, which is helping to lower the availability rate which has averaged over 20% over the past five years. Russo presented this re- search as part of a panel on repurposing suburban office parks at the American Plan- ning Association 2017 Na- tional Planning Conference in New York City, alongside Ralph Zucker of Somerset Development , Ann Brady of Plansmart NJ , James Hughes of Rutgers Univer- sity and Carlos Rodrigues,
69 King St.
future expansion,” said Ron Sholom, senior executive vice president. Deal #2: Ed Schein and Jeff Ful- ton sold a 200,000 s/f exclu-
sive in Dover, NJ last week. Team represented the seller, A&H Partnership, LLC. The property, at 69 King St. con- sists of five interconnected, multi-storied buildings on 1.84
acres. Lakos Construction, the purchaser, plans to redevelop the property. Lakos was rep- resented by Allan Settlow , of Newmark Associates . “The developer intends to convert a
Northern NJ office market “Pruning” expected to continue as economic expansion cycle endures
strict requirements are leaving obsolete buildings behind for build-to-suit opportunities. Similar signs are visible in other major suburban office markets nationally, with com- panies relocating to the mixed- use, 24/7 environments pre- ferred by the millennial labor pool, steering away from the single-purpose, sterile work- places of the second half of the 20th century. The abundance of obsolete suburban buildings is contributing to Northern NJ having one of the highest office availability rates in the US. It is also creating a growing interest in re-purposing these obsolete properties through extensive renovation or rede- velopment into competitive office product or for other uses such as residential, retail or industrial. Mountain Development’s 56 Livingston Ave. in Roseland is an example of a suburban property that has fought to stay competitive. Following a $50 million upgrade that included the addition of a full-
56 Livingston Ave.
FAICP of Design Solutions for a Crowded Planet . Due to a combination of shifting workplace needs and preferences, suburban office markets in the US have been significantly underperforming. Tenants in the market are seek- ing upgraded amenities and working environments that are not typically provided by older
facilities, yet a total of 71% of the inventory in Northern NJ was constructed prior to 1990. Current demand drivers for of- fice space include high ceilings, open floor plates, maximum window line exposure, ample parking and modern building amenities such as food service, fitness centers and conference areas. Therefore, tenants with
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