"The borrower secured prepayment flexibility and an attractive spread to float over LIBOR," says James Gunning of CB Richard Ellis Debt & Equity Finance, Saddle Brook, who teamed with that firm's Donna Falzarano to arrange the transaction. "This will make a recapitalization to long-term financing more efficient once the property is fully stabilized and the credit markets recover."
Located at 3040 Route 22 West, the nine-year-old building was acquired earlier this year by the Morristown-based Normandy in a three-property acquisition from Advance Realty Group of Bedminster. The latter had held the property for three years, buying it from original developer Matrix Development Group in 2005 for a reported $16 million.
The building was 85% occupied at the time of financing, with Hewlett Packard and Ortho Biotech its major tenants. Availabilities of approximately 1,850 and 9,930 sf are currently listed with an asking price of $26 per sf.
And the property has another upside. An adjacent 32-acre site is currently vacant and cleared for development of up to 250,000 sf of additional office space.
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