A 550,000-square-foot industrial property in Parsippany has sold for $85.25 million.
The sellers, Turnbridge Equities and Harbor Group International, had bought 100 Jefferson Road for $60.3 million just two years ago.
The partnership spent $4 million on improvements to the New Jersey property, including to demolish former Pfizer lab space and overhaul the HVAC system.
The buyers are three limited liability companies: Jefferson Industrial Park, 100 Jefferson Solar and Heritage Crossroads, according to a notice of settlement filed in Morris County.
Office campuses, a dominant feature of the suburban Parsippany landscape, have generally struggled in the past decade as urban areas became more popular. Parsippany lacks a commuter rail station and a walkable downtown center. But it has excellent highway access as a crossroads for Interstates 287 and 80, which are attractive to businesses that rely on trucking.
A press release on the sale noted that 100 Jefferson Road was just 28 percent occupied when it was purchased by the joint venture but is now 64 percent leased to PNY Technologies and Vitaquest International. Approximately 200,000 square feet remain vacant.
“The Northern New Jersey market continues to be attractive to industrial investors
because of its ideal location combined with a lack of new warehouse supply and continued
strong demand drivers,” Jason Davis, managing director at Turnbridge Equities, said in a statement.