Millburn-based Iron Ore Properties LLC recently purchased 240 and 255 Cedar Knolls Road in Cedar Knolls, a 117,494 square foot office building and approximately 14 acres of land,
Terms of the deal were not disclosed. T
Situated just off 287 on the Whippany River and Patriot’s Path, the office building is over 90% occupied. Tenants include a range of government, medical, communications/media, law firms and financial firms. The building is commonly known as the Cedar Knolls Corporate Center.
“It is an incredible piece of land anchored by a stabilized office building that saw significant investment over the last 5 years,” Iron Ore Co-Managing Member Josh Mann said. “We look forward to investing further into the office building and working with the Township of Hanover on realizing the potential of the Property.”
Previous ownership invested over $2 million in the office building, including new elevators, heat pumps, bathrooms and lobby upgrades. The building features a full-service cafeteria, fitness center with shower facilities and a conference center.
This is the second office building Iron Ore purchased in the last 12 months. Last year, the company took title to 80 Main Street in West Orange.
“We are seeing in real time that demand for office space exists– but you have to be impeccably located, invest meaningfully into these buildings and provide value. The expectation is Class A level space at reasonable prices. We are turning tenants away at 80 Main Street after just one year while we execute our investment strategy there, and we look forward to executing on our plans at 240 Cedar Knolls,” Iron Ore Co-Managing Member Josh Sternberg said.
“We are watching the conversion or tearing down of office buildings throughout this submarket– and we think that’s healthy and good for the marketplace and the towns. Underutilized office properties and/or empty office buildings are a blight and drag on communities. This is especially true as municipalities face additional revenue pressures and rising costs. We think there is opportunity in this space over the next 3-5 years,” added Mann. “At this location, there is an opportunity to invest and keep the office building while looking at options for the surrounding grossly underutilized land.”
Jackie Chesler and Partick Norris of Colliers represented the Seller and procured the buyer. Brad Domenico and Jack Subers of Cushman and Wakefield advised Iron Ore and procured bank financing from First Commerce Bank of Lakewood. Matt Schiller, Esq. and Holly Burke, Esq. of Murphy, Schiller & Wilkes LLP represented Iron Ore as legal counsel, while Yisroel Y. (Jacob) Leshkowitz, Esq. represented the Seller.
