Morristown Plaza. Image courtesy of Cushman & Wakefield
Pentaurus Properties has closed on the acquisition of Morristown Plaza, a two-building, 122,103-square-foot office campus in Morristown, N.J. Cushman & Wakefield arranged the $21.5 million transaction on behalf of the seller, The Silverman Group.
The campus’ tenant roster includes Lyons & Associates, Morristown Workplaces and Beacon Trust, according to CommercialEdge information. The two buildings were 92 percent occupied at the time of the sale.
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The property also includes a PNC Bank branch with drive-thru services. Additionally, the office campus features a combination of both surface and covered parking, along with a recently upgraded amenity center. On-site amenities include a full-service cafe, a fitness center and a shared conference facility, all of which have been renovated.
Situated at 161-163 Madison Ave., the park is 2 miles from downtown Morristown and has direct access to Interstate 287. The buildings are also close to the Morristown Transit Station, offering New York City connections.
Cushman & Wakefield Executive Vice Chairs Gary Gabriel and David Bernhaut, Executive Director Frank DiTommaso, along with Senior Financial Analyst Bill Baunach and Financial Analyst Maia Sirabian, with support from the team’s Private Capital Group of Managing Director Andy Schwartz, Director Jordan Sobel and Associate Andre Balthazard, represented the seller in the transaction.
Earlier this year, the same team represented Adoni Property Group in the acquisition of a two-building, 216,573-square-foot office campus in Basking Ridge, N.J.
New Jersey office vacancy rates continue to rise in 2023
Following an upward trend in the second half of 2022, the office vacancy rate in Northern and Central New Jersey continued to rise in early 2023, according to a first-quarter JLL report. The vacancy rate approached 26.0 percent, an increase from 24.5 percent at the end of 2022.
The vacancy rate recorded upward pressure due to reduced leasing activity and an increase in vacant spaces resulting from consolidations, the same source shows. The higher vacancy rate in the first quarter was primarily driven by a negative net absorption of more than 1.8 million square feet.
