Sale highlights continued demand for stabilized, well-located space in the northern New Jersey submarket
Global commercial real estate advisory firm Newmark Knight Frank (NKF)is pleased to announce it has negotiated the partial sale and leaseback of a two-building office property at 310 (South Building) and 322 (North Building) Highway 35 S for $14.8 million. The building’s current owner, Markel Service, Incorporated (“Markel”), a wholly owned subsidiary of Markel Corporation, has reached a partial sale and leaseback agreement with Denholtz Properties.
NKF Executive Managing Director Steven M. Schultz, Managing Director Tony D. Georgiev, and Managing Director Adam Silver as leasing expert, represented the buyer and seller in this transaction.
Markel, one of the largest excess and surplus lines insurers in the United States, has leased the South Building as one of its headquarters since 2002 and will continue to lease 100% of the building on a long-term basis following this deal. Markel will also lease 22.13% of the North Building, and along with four other subtenants, which brings the North Building’s occupancy level to 76.33%.
“It was a pleasure to work with both Denholtz and Markel on this transaction,” said Schultz. “This property is conveniently located off of highly trafficked Route 35 and supported by a variety of additional transportation networks. The buildings, midway between New York City and Philadelphia, are both the perfect location for Markel to continue doing business and a compelling investment opportunity for Denholtz.”
“We’re excited about the potential of this office portfolio, as it continues our ongoing focus on strategic investments in the Red Bank market,” said Steve Cassidy, President of Denholtz Properties. “The long-term leaseback agreement provides us with a predictable income stream from the South Building and the opportunity to realize additional value in the North Building.”
The South Building, a three-story, state-of-the-art facility with amenities including a fitness center, cafeteria and redundant backup power, stretches across 3.85 acres. The North Building, developed in 2007, is also three stories, with amenities including a shared conference room, auditorium, training room and kitchen, and stretches across 3.67 acres.
310 and 322 Highway 35 S provide easy access to every major market and distribution point within 350 miles, including an eclectic mix of businesses in the entertainment, retail, professional, medical and hospitality industries. The property, positioned within minutes of downtown Red Bank, is surrounded by some of the wealthiest municipalities in New Jersey where many executives reside and offers local businesses a deep workforce of both executives and employees.