Iron Ore Buys Cedar Knolls Property with 117,000 Sq. Ft Office Building
Iron Ore Properties LLC has acquired more than 117,000 square feet of office space and some 14 acres of land as part of a newly announced deal in Hanover Township.
The firm, which is based in Millburn, paid an undisclosed price for the properties at 240 and 255 Cedar Knolls Road in the town’s Cedar Knolls section. It noted that the 117,494-square-foot office building is more than 90 percent occupied by tenants from the government, medical, communications and media, law and financial sectors, adding that the Cedar Knolls Corporate Center sits just off Interstate 287 and along the Whippany River and the roughly 74-acre trail known as Patriot’s Path.
Iron Ore also said the building’s prior owner invested more than $2 million in upgrades such as new elevators, heat pumps, bathrooms and lobby upgrades.
“It is an incredible piece of land anchored by a stabilized office building that saw significant investment over the last five years,” said Josh Mann, Iron Ore’s co-managing member. “We look forward to investing further into the office building and working with the Township of Hanover on realizing the potential of the property.”
The firm added that the building has a full-service cafeteria, a fitness center with shower facilities and a conference center.
“The offices are a diverse mix of tenants with only one occupying more than 10 percent of the square footage,” said Josh Sternberg, also a co-managing member. “The floorplates allow for flexibility to deliver smaller offices that are in demand right now in the market.”
Jacklene Chesler and Patrick Norris of Colliers represented the seller and procured the buyer, while Brad Domenico and Jack Subers of Cushman & Wakefield advised Iron Ore and procured bank financing from First Commerce Bank of Lakewood. Matthew Schiller and Holly Burke of Murphy Schiller & Wilkes LLP represented Iron Ore as legal counsel, with Yisroel Y. (Jacob) Leshkowitz representing the seller.
The deal marks Iron Ore’s second acquisition of an office building in the last 12 months after the firm last year took title to 80 Main St. 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,” Sternberg said. “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.”
Mann added: “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 three to five years. At this location, there is an opportunity to invest and keep the office building while looking at options for the surrounding grossly underutilized land.”
Mann was also full of praise for all who worked on the deal.
“This was not an easy transaction,” he said. “Everyone worked really hard here, and thank goodness we had a team of A+ professionals on all sides and a great lending partner in First Commerce Bank to get this done.”
Article sourced from RE-NJ.