Real Estate
85K-Square-Foot Parsippany Office Building Sells For $4.9 Million
The building is 60 percent occupied with several long-term office tenants, according to the real estate company that completed the sale.
![The office building at 299 Cherry Hill Rd., Parsippany sold for $4.9 million.](https://patch.com/img/cdn20/users/23182514/20220112/015848/styles/patch_image/public/299-cherry-hill-rd___12131827496.png)
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.”
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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.
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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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