85K-Square-Foot Parsippany Office Building Sells For $4.9 Million

PARSIPPANY, NJ — A three-floor office building in Parsippany sold for $4.9 million. The 299 Cherry Hill Rd. building is 60 percent occupied with several long-term office tenants, according to CBRE, the commercial real estate company that completed the sale.

CBRE, which announced the transaction Tuesday, did not reveal the out-of-town buyer. The 85,000-square-foot building sits right by several major roads, including Routes 46, 80, 202 and 287.

“Although the office sector has suffered during the pandemic, this sale demonstrates that well-positioned and well-located properties are still highly sought-after,” said Charles Berger, part of CBRE's team who represented the property's seller. “We were able to maximize the value of the asset through a competitive process with over 15 offers and helped bring about a quick and efficient closing for our client.”

CBRE said the acquisition represents a "significant upside" for the buyer, noting that the real estate company sold a similarly sized officer property for $9 million in June 2020.

Office space represents a major sector of the Parsippany economy. The township has more than 12.3 million square feet of office space, making it the third-largest regional market sector in North Jersey behind only the Hudson Waterfront (21.2 million square feet) and Newark (14.4 million square feet), according to Daily Record.

Parsippany has seen some major transactions and changes in commercial real estate in recent years, including the following:

• The Wegmans Retail Center sold for $46 million in July. Wegmans Food Markets anchors the property, which owners also lease to Panera Bread. The sale included nearby restaurants Capital Grille and Seasons 52.
• Mack-Cali — a major player in Parsippany real estate — rebranded last month to Veris. The name change reflects the company's years-long vision to sell its office properties and shift into the residential market. As Mack-Cali, the Jersey City-based company made plans in 2019 to sell its entire suburban-office portfolio, including 2.4 million square feet of office space in Parsippany and Madison. A joint venture led by Onyx Equities purchased the property in a $288.5 million deal.
• Although some tenants are moving out of Parsippany, at least one property owner is using that as an opportunity to revamp its office space. Signature Acquisitions will renovate 100 Kimball, a 175,000-square-foot office space on 100 Kimball Dr. The changes will be "tailored to the post-pandemic work environment," according to the company.
• Developers broke ground last month on PARQ Parsippany. The property will encompass 75 townhomes, hundreds of multi-family residences, retail, green spaces and amenities, which developers hope will revitalize the area once home to office park Lanidex Plaza. Developers expect to complete the 23-acre transformation in 2025.

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