Repositioned Parsippany Office Building Changes Hands
During a recent competitive bidding process, Cushman & Wakefield conducted tours with more than 15 potential buyer groups and received multiple offers for 1 Gatehall Drive.
PARSIPPANY, NJ—Almost two-and-a-half years after purchasing the 115,000-square-foot office building here, a partnership of Lincoln Property Co. of Dallas and Development Ventures Group of New York City has sold 1 Gatehall Drive to an affiliate of Lakewood Equities.
Cushman & Wakefield, which represented the seller in the transaction, says the property attracted significant investor interest due to the building improvements that made the building more suitable to small and mid-sized users. During a recent competitive bidding process, Cushman & Wakefield conducted tours with more than 15 potential buyer groups and received multiple offers for 1 Gatehall Drive.
No financial terms of the transaction were disclosed.
“The Lincoln Property Company and Deven Group partnership did an outstanding job bringing out the potential of this boutique asset. In particular, their execution of physical upgrades and amenity enhancements allowed their leasing program to generate over a dozen new leases and renewals during the past 18 months,” notes Gary Gabriel, who headed the assignment with David Bernhaut, Andy Merin, Frank DiTommaso and Andy Schwartz. Cushman & Wakefield office leasing specialists William O’Keefe and Kelsey Nakamura also supported the transaction.
1 Gatehall Drive was delivered to the Lakewood Equities affiliate 86% leased to more than 20 tenants with an average size of 3,400 square feet. The property’s flexible layout caters specifically to a small and mid-size tenant base.
“Historically, over 30% of all leasing activity within the Parsippany submarket has consisted of transactions less than 10,000 square feet, and last year, 80% of activity within the larger Morris County market was made up of deals in that size range,” DiTommaso says. “Lakewood Equities recognized the property’s competitive positioning within the market and will continue to benefit from increased occupancy and newly executed leases.”
In April 2017, Lincoln Property Co. acquired the four-story 1 Gatehall Drive, from a joint venture of San Mateo, CA-based Glenborough and TIAA-CREF.