Newmark Knight Frank (NKF) is pleased to announce that Mountain Development Corporation has sold Spring Street Innovation Center for $23 million to Shelbourne Global Solutions. Representing the seller was Executive Managing Director Kevin Welsh, Managing Director Brian Schulz and Associate Chuck Kohaut of NKF’s Tri-State Capital Markets team, who were also responsible for procuring the buyer, Shelbourne Global Solutions. The NKF team collaborated with Mountain Development Corporation’s leasing agent Geoff Schubert from CBRE.
Located at 41 Spring Street in New Providence, New Jersey, Spring Street Innovation Center is a 171,216-square-foot, single-story building with research and development, technology and office space that recently underwent more than $3.5 million in capital improvements.
Strategically located in an established STEM micromarket within walking distance of NJ Transit’s Murray Hill Station and two miles from I-78 (Exit 43), Spring Street Innovation Center offers exceptional regional connectivity with access to North Jersey’s highly skilled and affluent labor force. The property is 88-percent leased to a strong base of nationally recognized STEM corporations, including C.R. Bard (Becton Dickinson), TRC Environmental, Linde Gas and PromptCare, providing stable long-term cash flow with upside potential.
“Mountain Development created substantial value at Spring Street Innovation Center, completing more than 55,000 square feet of new leases during their 18-month hold period,” said Mr. Schulz. “Shelbourne is well positioned to realize additional upside, benefitting from ongoing leasing activity to stabilize the asset fully.”
About Newmark Knight Frank
Newmark Knight Frank, operated by Newmark Group, Inc. (NASDAQ: NMRK), is one of the world's leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF's 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
About Mountain Development Corp.
MDC has more than 30 years of experience developing, acquiring, constructing, repositioning, managing, leasing and operating commercial property. The company is an active acquirer of a broad range of opportunistic and value-added real estate investments capable of generating attractive, risk-adjusted returns for both its principals and equity partners. Active throughout the Northeast, MDC’s accomplished staff includes in-house development, accounting, property management, construction, leasing and marketing professionals, enabling the company to operate autonomously and deliver expeditious, successful results.
About Shelbourne
Shelbourne is a New York based company that currently owns and manages over six million square feet of commercial real estate with a concentration in New Jersey, Delaware, Connecticut & Ohio. Shelbourne’s strategy and approach has been to acquire Class A office buildings that are opportunistic and high-yielding in secondary and tertiary markets. Through leveraging its extensive partner network and over 100 years of cumulative experience and expertise in public and private equity markets, Shelbourne has been able to source, structure and finance transactions to achieve superior, risk- adjusted returns for its investors.
Shelbourne’s strategy for its Commercial Real Estate acquisitions is to provide a cash on cash yield to investors and partners. By purchasing properties and holding them for 7 – 10 years, while reinvesting in the buildings’ common areas, amenities, services, and quality of maintenance, Shelbourne is able to renew current tenants’ leases, and justifiably increase rental rates.
