CBRE Sells 107,000-SF Office Building for Reckson

MONTVALE, NJ-Reckson Associates Realty Corp. has sold the 106,877-sf, class A 1 Paragon Dr. here to Clifton, NJ-based Ivy Equities. CB Richard Ellis’ Tri-State Investment Team, led by Jeff Dunne, along with Chris McManus and Kevin Welsh, represented the seller in the transaction. The sale price was not disclosed.

The building occupies an 11-acre site that includes more than 440 parking spaces. Montvale is one of the Garden State’s premier corporate headquarters locations, with the property’s neighbors including A&P, Benjamin Moore, BMW, Ingersoll Rand, Hertz, Mercedes Benz and Sony Electronics. The multi-tenant building, which was 87.6% leased at the time of the sale is unusual in a market dominated by single-tenant occupancies.

Indeed, related to the sale, the building’s occupancy will actually jump a couple of points past the 90% mark: “Ivy intends to move their corporate offices from Clifton into 5,000 sf of the vacant space,” according to Dunne. “Ivy has purchased a well-located asset with a strong tenant roster and good upside potential,” Dunne continues. “Besides the upside offered by the current vacancy, the building has further potential in terms of re-leasing currently occupied space that is at below-market rents.”

CBRE’s Tri-State Investment is a group of seven brokers who work cooperatively from the firm’s Paramus, NJ and Stamford, CT offices, specializing in the marketing of investment properties in suburban New York, New Jersey and Connecticut. Last year, the team sold 6.3 million sf with an aggregate value of more than $485 million.

In New Jersey, the team recently sold 1405 and 1425 Route 206 in Bedminster for $53.5 million, and is currently marketing the Genuity Data Center in Carteret, the Gruntal Building in Fort Lee, 7 Century Dr. in Parsippany and Greenbrook Corporate Center in Fairfield. Outside of the Garden State, the group recently sold properties in Garden City and White Plains, NY and Shelton, CT, and is marketing properties in White Plains, NY and Newington and Windsor, CT.