Lone Star Funds sells off office property in Montvale

Dallas-based Nessel Development closed last week on its acquisition of a 120,000-square-foot office property at 5 Paragon Drive in Montvale, NJBIZ reported. The purchase price was not disclosed. HFF represented the seller, a limited liability company associated with Dallas-based Lone Star Funds, which property records show paid $10.7 million to buy the property in May 2015, just four years after it traded for $20.6 million. HFF, poised to be absorbed by rival brokerage JLL, said that the property is currently 71 percent leased. The largest tenant is Australian travel company FC USA, which inked a 15-year lease for 71,000 square feet in 2016. According to Lincoln Property Company, the Parsippany-based leasing agent for the property, rental rates a 5 Paragon Drive are $26.50 per square foot. Lone Star and HFF began marketing the property in January. HFF said Lone Star invested more than $4 million to manage the build-out for FC USA. The Montvale property has a two-story atrium and is located near a 93,900-square-foot office property at 3 Paragon Drive that was sold for $14 million in October to Northeast Capital. [NJBIZ]