Colliers Uses Ten-X Online Platform In Piscataway Office Sale
Colliers used Ten-X and its own proprietary investor database to market the property, resulting in 10 qualified, active bidders and the execution of 135 confidentiality agreements.
PISCATAWAY, NJ—Colliers International Group used Ten-X, an online transaction platform for commercial real estate to complete the sale of 371 Hoes Lane in Piscataway, NJ, a 27%-occupied, multi-tenant office asset, to Brandon Rolnick, a private investor.
Terms were not disclosed, but according to Real Capital Analytics, a proprietary research database, the property’s current owner, New York-based CW Capital, acquired the property in foreclosure from Colony Realty Partners in April 2018. The previous prior sale was Colony’s acquisition of the asset for $16.4 million from Franklin Street Properties in November 2006.
The 138,629-square-foot office asset occupies 8.9 acres. The Colliers NJ investment sales team, led by Jacklene Chesler and including Patrick Norris, Matthew Brown and Angelo Vitale, based in Colliers’ Parsippany, NJ, office, represented the seller and procured the buyer.
“Piscataway is now the next biggest industrial hub in New Jersey,” Chesler says. “The demand for industrial space has spurred large industrial developments there and the demolition/repurpose of obsolete and vacant office product.”
The property’s convenient access to both New York City and Philadelphia, as well as Rutgers University-New Brunswick, made it attractive to investors. Colliers used Ten-X and its own proprietary investor database to market the property, resulting in 10 qualified, active bidders and the execution of 135 confidentiality agreements.
“The I-287 office submarket is now recognized as the most-improved office submarket in New Jersey,” says Chesler. “During the past two years, the vacancy rate has tightened by more than 690 basis points, from 18.5% in Q1 2016 to 11.6% in Q2 2018. Meanwhile, rental rates over this period have increased more than $1 per square foot. As the vacancy rate trend continues, the submarket and 371 Hoes Lane are poised for rental rate increases going forward.”
Built in 1989 and renovated in 1997, 371 Hoes Lane features a dramatic glass atrium and attractive black glass façade, plus an abundance of parking with a 4.25 space per-1,000 square-foot ratio. The new owner has hired Marner Architecture and Haas Construction to renovate the building. The aggressive capital improvement plan will include lobby and common area renovation, adding a conference center, café and fitness center. Rolnick plans to offer a class-A office experience with a robust amenity package at class-B rents. Colliers International‘s leasing team of Richard J. Madison and Jack Callahan will manage leasing at the property.
In the past two years, the Colliers NJ investment sales team has been extremely active in the Piscataway market, selling three other office buildings: 1 Centennial Plaza, a 245,000-square-foot class-A multi-tenant office building,15 Corporate Place South, a 162,000-square-foot class-B multi-tenant office building and 1 Corporate Place South, a 89,000-square-foot class-B multi-tenant office building. The team is also marketing for sale 225 Old New Brunswick Road, Piscataway, a value-add 65,000-square-foot multi-tenant office/redevelopment opportunity.