231,000-SF Office Complex Trades Hands

EDISON, NJ-The Edison Square office complex, a three-building, 231,000-sf property, has been sold. As reported by GlobeSt.com, seller Berkshire Funding Group put the asset up for sale this past spring, listing it with Newmark Knight Frank. Now, GlobeSt.com has learned, the complex is moving into the portfolio of partners Onyx Equities of Woodbridge and Invesco Realty Advisors of New York City.

The sale price was not disclosed. However, GlobeSt.com has learned that the deal was concluded with the help of a $20.26-million on-book, fixed-rate loan provided by GE Real Estate's Northeast office, Norwalk, CT. The financing transaction was orchestrated by the New York and New Jersey offices of Holliday Fenoglio Fowler.

Built between 1984 and 1987, the 17-acre complex consists of 2025 and 2035 Lincoln Hwy., 67,500 sf and 97,000 sf respectively which combined are approximately 85% leased. The 2045 Lincoln Hwy. building totals 67,500 sf and is currently vacant. Also part of the complex are a central courtyard and a heliport. The 170-room Clarion Hotel on the property is not part of the sale.

"GE understood the value potential of this asset," says Jonathan Schultz, managing partner for Onyx. "They structured a loan well-suited to support our growth," adds Schultz, who notes that the proceeds of the financing will be used to make some capital improvements to the property and get it leased up to stabilized occupancy levels.

"The value-add opportunity for this property combined with strong market fundamentals made this a good fit for our flexible fixed-rate program," says David Cohen, regional director of the Northeast for GE's North America Lending Group. "We hope this will be the first of many successful transactions between our companies."

"It was a fixed-rate acquisition/bridge loan with as creative structure, providing the flexibility to sell off excess land and one of the three office buildings prior to totals repayment," says Jon Mikula, senior managing director in HFF's Florham Park office. "Also, the 'borrower-friendly' prepayment penalty structure gave our client the flexibility to execute their two- to three-year lease-up and capex plan with a locked-in rate, but with freedom to hit an early home run and not be hamstrung with as hefty penalty.