BASKING RIDGE, NJ—Another suburban office campus redevelopment has paid off for Rubenstein Partners and its partner Onyx Equities. The joint venture has sold 211 Mount Airy Road in Basking Ridge, NJ, a class-A suburban office campus that the pair had redeveloped with a new façade and upgraded amenity package. The property was sold for $98.5 million to Harbor Group International.
Rubenstein and Onyx acquired 211 Mount Airy Road from Avaya in late 2013 for a reported $12.2 million, according to Real Capital Analytics, a proprietary research database. Following the acquisition, the Rubenstein/Onyx partnership implemented a redevelopment plan that significantly modernized the early 1980s vintage building. In particular, the building’s concrete skin was replaced with a contemporary glass curtain wall system that allows abundant natural light into tenant spaces. The main lobby was also extensively renovated, highlighted by the addition of state-of-the-art video walls. The building now features headquarters-quality amenities, including a full cafeteria, fitness facilities, 127-seat auditorium and conference center.
“Together with Onyx, we were able to create truly unique office product that was ideal for a large tenant desiring a headquarters-quality office campus,” says Stephen Card, principal and the regional director of Mid-Atlantic for Rubenstein Partners. “At Rubenstein, we routinely look to acquire large blocks of quality vacancy in high-performing submarkets, and the 211 Mount Airy Road investment illustrates this thesis successfully playing out.”
“When Onyx and Rubenstein purchased 211 Mt Airy Road and decided to transform it into one of the best suburban office buildings in New Jersey, we were convinced that a great multinational company would identify our commitment to quality,” says DJ Venn, senior vice president of asset management for Onyx Equities. “We were proud that Daichi Sankyo chose this outstanding asset as its headquarters.”
As previously reported by GlobeSt.com in April 2016, Onyx and Rubenstein scored a double-play of sorts by helping Avaya relocate to the Mount Kemble Corporate Center in Morristown so that Daiichi Sankyo could occupy the complex, currently on a 16-year lease.
Correction, 7/12/2017, 2:33 p.m.: Because of incorrect information in a research database, an earlier version of this story incorrectly reported that Daiichi Sankyo was the buyer of the property. Daiichi Sankyo says it did not buy the building. Daiichi Sankyo continues to occupy the building on a long-term lease. Industry observers familiar with the transaction say the buyer was actually Harbor Group International.