KBS Sells NJ Office Complex for $88M

ISELIN, NJ – KBS has sold its six-building, class A office complex, Woodbridge Corporate Plaza, in Iselin, NJ for $88 million. The property was purchased by the New York-based, Northeast Capital Group.

The 629,189-square-foot office complex, located at 485 US-1, is currently 90% leased to 64 tenants.

KBS originally acquired the business park in 2005, prior to completing a multi-million dollar renovation which included adding all new corridors and restrooms, upgrading flooring and lighting, installing new entrance doors and new signage for tenants.

The property currently features amenities such as a new 6,000-square-foot fitness center, a full-service café and caterer, an on-site management office and shuttle service to the Metropark transit hub.

“Northeast Capital Group recognized an extraordinary opportunity to acquire one of Metropark’s most desirable office parks,” says Stephen Close, SVP of KBS and asset manager of Woodbridge Corporate Plaza. “The renovations KBS completed at this property make this well-located asset even more attractive to existing and prospective tenants. This business park is an excellent addition to the buyer’s portfolio.”

“The New Jersey office market is home to a diverse roster of Fortune 500 companies and tenants who are drawn to a highly accessible, regional location,” says Marc DeLuca, Eastern regional president of KBS. “Woodbridge Corporate Plaza is defined by its proximity to the intersections of I-95, I-278 and Route 1 with exceptional mass transit connectivity via Amtrak, New Jersey Transit and the Metropark Station.”

Directing the sale on behalf of the seller was Newmark’s executive managing director Kevin Welsh, managing director Brian Schulz, associate Jason Emrani and transaction manager Maria Betancourt, as well as Jamie Drummond. Greenberg Traurig LLP’s attorney Bruce Fischer, attorney Howard Chu, paralegal Amanda Kennedy and attorney Steven Fleissig represented KBS as legal counsel in the disposition.

“Woodbridge Corporate Plaza has seen close to a half million square feet of leasing velocity since January 2017,” states Welsh. “The property is 90% leased to a diverse base of 64 tenants with investment-grade anchors, providing stable cash flow and staggered rollover. Moreover, this asset offers Northeast Capital Group a secure income stream with strong cash-on-cash returns at an attractive basis. The property’s dynamic location and market-leading leasing velocity make it a rare investment opportunity in the area.”

“The office market is poised for recovery as we move out of this health and economic crisis,” states DeLuca. “We’ve heard from numerous tenants that they are eager to return to the workplace after many months of working remotely. During the shutdown, productivity has begun to dip as people have grown weary of working from home. Companies and their teams are looking forward to coming back to the office safely where they can do their best collaborative and creative work. Properties like Woodbridge Corporate Plaza represent the type of superior-quality, well-amenitized space these firms are seeking as they navigate their way back to the office.”