The deal was arranged by Jeffrey R. Dunne and Kevin P. Welsh of CB Richard Ellis' New York Tri-State Investment Team, who represented the seller and brought the buyer to the deal. The sale price factors out to just $101 per sf, and the building has significant upside potential in that it's about two-thirds vacant. The one-third occupancy is a single tenant, the headquarters location of National Prescription Administrators Inc.

"The credit income stream provided by National Prescription Administrators offsets the building's expenses and provides current cash flow," Dunne says. "This coverage puts the new owner in a position of not having to cover negative cash flow while leasing the balance of the space."

"This is an opportunity to position the property to both large and mid-size tenants by providing a range of available space options," Welsh adds.

CBRE also has the leasing exclusive for the property, and the available space is currently listed on that firm's website with an asking price of $22.50 per sf. Built in 1981 and located at 711/717 Ridgedale Ave. here, the property consists of two interconnected buildings. The two-story North Building totals 36,660 sf, while the South Building, rising three stories, totals just under 114,800 sf and is built partially over grade-level surface parking. The two buildings are connected by a second-story skywalk.

The transaction marks the second time the center has traded in two years. In early 2004, it was acquired by the PREI-led group for an undisclosed price from Express Scripts Inc., a pharmacy benefits company. Express Scripts had acquired current tenant, National Prescription Administrators, along with the building, approximately two years prior to that.

For PREI, the sale is part of a year-long effort to reposition its portfolio that has included the sale of a number of its properties. NPA continues to operate on site as a wholly owned subsidiary of Express Scripts.

Instant Insights /

$15M Takes 151,000-SF Office Complex

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