Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BERNARDSVILLE, NJ-Denholtz Associates has acquired a 56,000-square-foot, class A office building here. Stephen Cassidy, president of Rahway-based Denholtz, tells GlobeSt.com that the acquisition was financed by the existing lender on the building, RAIT Financial Trust. The previous owner was NPV Direct Invest. RAIT and NPV were represented by Cushman & Wakefield.

Cassidy declined to specify the price paid for the property, which sits at 150 Morristown Rd. However, Jeffrey C. Clary, principal and associate general counsel for NPV Direct, tells GlobeSt.com that the property was sold for $5.9 million.

“We feel that we acquired it at a price point that was at a substantial discount to replacement value and allowed us to yield an IRR that would exceed our investment criteria,” Cassidy says. Although he refrained from identifying the firm’s return parameters, Cassidy says that “Something north of mid-teens is certainly what we are looking for today.”

Denholtz is the lead investor in the deal and will manage the property in partnership with Becker Brothers LLC, a real estate investment company in Roseland. Denholtz, a private development, investment and management company, brought in other partners as well, although Cassidy declined to name them. Despite the challenge of working out the terms with the lender, he says investors were interesting in taking part in the deal.

“We were pleased by the equity response we received in subscribing this transaction,” Cassidy confirms. “We were frankly unsure about the appetite for this type of product with our investment group. To our happy surprise they received this project very well.”

The property is slightly over 50% occupied. One of its largest tenants, Pulte Homes, moved out about a year ago, according to Cassidy. “We see this property as a suburban office building that caters to professionals and mid-size firms,” he details. “It offers flexibility, since it can be subdivided anywhere from 1,500 to 15,000 square feet.”

A Q2 report from Cushman & Wakefield listed the direct average asking rental rate for Somerset County office properties at $24.62 per square foot. “Due to our acquisition price, we will be a very competitive in the marketplace,” Cassidy says. The two-story building offers 24/7 access and executive covered parking. It is directly off of Route 202/206 and is close to Routes 78 and 287.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.