A Massachusetts-based private equity firm has acquired Morris Corporate Center I & II in Parsippany, with plans to spend some $3 million on upgrades for the 28-year-old complex.
The firm, Brookwood Financial Partners, did not disclose the purchase price or the seller of the 529,000-square-foot property, which it said is 78 percent occupied. To boost occupancy, the firm said it will upgrade signage, common areas and amenities such as the fitness center, along with “extensive” landscaping improvements.
“In conjunction with these property capital upgrades, we will be implementing an aggressive marketing program, offering prospective tenants attractive rental rates and full tenant improvement allowances, which should allow us to accelerate the lease-up of the remaining vacant space,” Thomas W. Brown, Brookwood’s director of acquisitions, said in a prepared statement.
The two-building complex at interstates 287 and 80 was developed in 1986 by SJP Properties, which reportedly sold the property in 2000. It also sits in a submarket that’s grappling with high vacancy after the real estate downturn, as are many other suburban office destinations in New Jersey. First-quarter vacancy was 31.6 percent, according to the brokerage firm JLL.
But Brookwood in a news release said “this part of New Jersey is showing signs of stabilization,” pointing to positive absorption in four of the five most recent quarters, along with decreasing unemployment in Morris County.
Jeff Dunne, Kevin Welsh and Brian Schulz of CBRE represented the seller in the transaction. Christian Lee, Charles Foschini and Christopher Apone of CBRE represented the Beverly, Mass.-based Brookwood in securing financing through Starwood Property Mortgage LLC.
CBRE has been retained to handle the leasing and property management for the property.
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