Thank you for sharing!

Your article was successfully shared with the contacts you provided.

RIDGEFIELD PARK, NJ-According to the Wall Street Journal, opportunistic investors who have bought buildings at steep discounts are beginning to pass on their savings to tenants, much to the distress of other landlords in the area.

Samsung Electronics America Inc. just signed for 193,000 square feet in an office building here for its North American headquarters. Earlier this year, the 235,000-square-foot building at 85 Challenger Rd. was purchased by KABR Real Estate Investment Partners LLC, which had taken control of the distressed property.

The price KABR paid for the then-empty property was about $10.5 million, or about $44 a square foot. The average price of comparable office buildings sold near the peak of the market in 2007 was about $200 a square foot, according to Real Capital Analytics, a New York real-estate research firm.Paramus-based KABR said it leased the property to Samsung for about $20 a square foot annually, according to the Journal. That is well below the East Bergen County submarket’s average annual asking rent of about $31 a square foot for class A property, according to Studley. On top of that, Samsung got more than $40 a square foot in tenant-improvement costs, above the average of about $30 in the market, according to Kenneth Pasternak, a principal in KABRTo read the entire Journal article, click here.

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 © 2022 ALM Global, LLC. All Rights Reserved.