Princeton Equities in Sale-Leaseback for 1 Corporate Place South in Piscataway
“The I-287 corridor office submarket is recognized as one of the most improved office submarkets in the state due to the tightening availability rate, inflation of rents and the ongoing repurposing of office buildings for alternative uses in Piscataway,” says Colliers' Jacklene Chesler.
PISCATAWAY, NJ— A private NJ based investor, 52 Paterson Partners, purchased 1 Corporate Place South in Piscataway, a multi-tenant office asset, from Princeton Equities in a partial sale-leaseback valued at $10 million.
Located just west of the New Jersey Turnpike along Interstate 287 in the I-287 Corridor Submarket, the property drew more than 12 written offers and multiple bid rounds soon after being presented to the market.
Colliers International NJ brokered the transaction involving the 88,780 rentable-square-foot office asset, situated on a 5.5-acre site. Jacklene Chesler, Patrick Norris, Matthew Brown and Angelo Vitale, based in Colliers’ Parsippany, NJ, office, headed the assignment.
“The I-287 corridor office submarket is recognized as one of the most improved office submarkets in the state due to the tightening availability rate, inflation of rents and the ongoing repurposing of office buildings for alternative uses in Piscataway,” Chesler says. “The submarket has experienced approximately 170 basis points of tightening in the vacancy rate, along with a direct average asking rental rate growth of 3.4% over the last four quarters.”
Built in 1981, 1 Corporate Place South was upgraded in 1997, with additional lobby and façade renovations in 2009. The property—situated within the Corporate Park 287 office park that includes large corporate users such as Siemens AG, Nomura Securities, Barclays, and Verizon—provides easy access to county amenities and a highly skilled workforce. It is 100%-occupied by four tenants including Marlabs, an owner/user technology firm that is the anchor tenant in the property.
“It is noteworthy that Piscataway is now deemed to be the next biggest industrial hub in New Jersey,” Chesler says. “The demand for industrial space has spurred large industrial developments in Piscataway and the demolition/repurpose of obsolete and vacant office product. There are currently five industrial projects under construction in Piscataway totaling 1.9 million square feet with 69% of it already being pre-leased. Rockefeller Group currently has four buildings in development totaling 1.1 million square feet.”
In the past 19 months, the Colliers NJ Investment Services team has been extremely active in the Piscataway market—selling two other office buildings—1 Centennial Plaza, a 245,000 square-foot class-A multi-tenant office building; and 15 Corporate Place South, a 162,000 square-foot class-B multi-tenant office building. The team is also marketing 371 Hoes Lane, Piscataway for sale, a value-add 139,000-square-foot multi-tenant office investment opportunity.
Correction, 6/1/2018, 10:53 a.m.: An earlier version of this story carried an older photo of the property. That image has been replaced by a newer photograph.