Updated Parsippany office building sold for 40 million

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(This story was updated at 9:30 a.m. Thursday with additional details and a statement from CBRE Group, Inc.) A New York-based real estate investment trust announced Wednesday that it has sold a Parsippany office property for approximately $40 million.CBRE Group Inc. represented One Liberty Properties, Inc., in the sale of 45 Waterview Blvd. to a fund invested in by an offshore entity. It was the first U.S. purchase for the fund, which is managed by JM Capital LLC and advised by Nadlan Advisors LLC, CBRE said in a news release.

The property is a 106,680-square-foot office building located on a campus at the intersection of Interstate 80 and Interstate 287. It serves as the North American headquarters for life and material science company Royal DSM, and is 100 percent net leased on a long-term basis, CBRE said.

“Forty-five Waterview demonstrates the substantial depth of capital for long-term, net leased assets in New Jersey,” Jeffrey Dunne, a member of the CBRE team, said in a prepared statement. “This depth of capital is further exemplified by our recent sale of 2 Giralda Farms in Madison, New Jersey, for $53.3 million and 1467 Route 31 in Annandale, New Jersey, for $18.1 million. While the buyers of 2 Giralda Farms and 1467 Route 31 South were domestic capital sources, 45 Waterview attracted offshore capital, given its longer term 13-year lease.”

One Liberty, which is incorporated in Maryland and has its base in Great Neck, New York, said in a news release that its gain from the sale would be approximately $10 million for financial statement purposes and $21 million for federal income tax purposes.

“We continue to refine our portfolio through effective capital recycling efforts, marked by the sale of an asset we believed reached full value and enabled us to generate an attractive return for our investors,” Patrick J. Callan Jr., CEO and president of One Liberty, said in a prepared statement. “We are pursuing acquisition transaction(s) which may allow us to defer all or a portion of the gain for Federal income tax purposes, though no assurance can be given that we will be successful in this regard.”

The CBRE team of Dunne, Kevin Welsh, Brian Schulz and Frank Maresca represented One Liberty and procured the buyer.

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