HACKENSACK, NJ—Simone Development Companies, an investor and developer of medical office and healthcare properties throughout New York City, Long Island, Westchester and Fairfield counties, has made its first foray into Northern New Jersey, acquiring Prospect Plaza at 385 Prospect Avenue in Hackensack NJ. The property is a three-story, 62,000 square-foot medical office building near Hackensack University Medical Center.
Simone Development acquired the property for $4.5 million, according to Real Capital Analytics, a proprietary research database. Joseph Simone, president of Simone Development, and Joseph Deglomini Jr., a principal with the firm, arranged the acquisition.
“The property at Prospect Plaza presented a unique opportunity to acquire a medical office building in a competition constrained market where existing medical office properties are more than 96-percent occupied,” says James D. MacDonald, vice president of leasing, Simone Metro Properties. “The building is complimented by surrounding medical offices, senior-living communities and other healthcare specialists, and Hackensack has experienced a surge in multi-family development over the past five years, increasing the need for healthcare services in the area.”
The firm plans an extensive renovation of the property, including new lobbies, common areas, façade work and energy management upgrades to bring the asset up to the quality standards the company is known for throughout the its portfolio of medical office properties.
The property is 52-percent occupied by a diverse group of medical tenants including the New Jersey Imaging Network. Simone says it sees the property as an attractive value-add opportunity to re-position the building and increase NOI substantially via lease-up of immediately available space in a transforming Live/Work/Play community with an expanding healthcare presence and population.
Located less than a mile north of Hackensack University Medical Center and less than a half mile from the Anderson Street NJ Transit station, the property offers excellent accessibility to Interstate 80, Route 17, Route 4, the Garden State Parkway and Interstate 95/NJ Turnpike.
The property, situated on 1.6 acres and built in 1983, features parking for more than 200 vehicles.