- 138,629-square-foot Office Asset Drew High Volume of Investor Interest -
Colliers International Group Inc. (NASDAQ:CIGI, TSX:CIG) has arranged the sale of 371 Hoes Lane in Piscataway, a 27 percent occupied, multi-tenant office asset. The Property’s convenient access to both New York City and Philadelphia, as well as Rutgers University-New Brunswick, made it attractive to investors.
Brandon Rolnick, a private investor, purchased the 138,629-square-foot office asset situated on 8.9-acres. The Colliers NJ Investment Sales Team represented the seller and procured the buyer. The team is led by Jacklene Chesler and includes Patrick Norris, Matthew Brown and Angelo Vitale, all based in the global commercial real estate services firm’s Parsippany, N.J., office. Colliers marketed the property in conjunction with Ten-X, an online transaction platform for commercial real estate, also leveraging Colliers’ proprietary investor database. This hybrid approach resulted in 10 qualified, active bidders and the execution of 135 confidentiality agreements.
“The I-287 office submarket is now recognized as the most improved office submarket in New
Jersey,” said Chesler. “During the past two years, the vacancy rate has tightened by more than 690 basis points, from 18.5% in Q1 2016 to 11.6% in Q2 2018. Meanwhile, rental rates over this period have increased more than $1.00 per square foot. As the vacancy rate trend continues, the submarket and 371 Hoes Lane are poised for rental rate increases going forward.”
“Piscataway is now the next biggest industrial hub in New Jersey,” Chesler said. “The demand for industrial space has spurred large industrial developments there and the demolition/repurpose of obsolete and vacant office product.”
Built in 1989 and renovated in 1997,371 Hoes Lane features a dramatic glass atrium and attractive black glass façade, plus an abundance of parking with a 4.25 space per-1,000 square-foot ratio. The property is currently 27 percent occupied. The new owner, Brandon Rolnick, has hired Marner Architecture and Haas Construction to renovate the building. The aggressive capital improvement plan will include lobby and common area renovation, adding a conference center, café and fitness center. Rolnick plans to offer a Class-A office experience with a robust amenity package at Class-B rents. Colliers International will maintain leasing at the property. The leasing team consists of Richard J. Madison and Jack Callahan.
In the past two years, the Colliers NJ Investment Sales Team has been extremely active in the Piscataway market, selling three other office buildings: 1 Centennial Plaza, a 245,000-square-foot Class-A multi-tenant office building,15 Corporate Place South, a 162,000-square-foot Class-B multi-tenant office building and 1 Corporate Place South, a 89,000-square-foot Class-B multi-tenant office building. The team is also marketing for sale 225 Old New Brunswick Road, Piscataway, a value-add 65,000-square-foot multi-tenant office/redevelopment opportunity.
About Colliers International Group
Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is an industry leading global real estate services company with more than 15,000 skilled professionals operating in 69 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 13 consecutive years, more than any other real estate services firm.
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