Savills said Jan. 22 that it arranged the $5.5 million sale of 100 Summit Avenue in Montvale, a 127,000-square-foot office complex recently occupied by Western Union. The property was purchased by private equity investment firm Tryko Partners which plans to convert the building into a nursing home. Western Union, which occupied the property for nearly 15 years, is phasing out use of the property in an effort to consolidate its national real estate footprint and plans to relocate to a new, smaller office in the immediate area.

“Savills marketed this property as a repositioning opportunity and, ultimately, the team was able to execute the transaction on behalf of the client in the midst of a pandemic because we identified a creative party to purchase and reimagine the asset,” said Savills Executive Vice President and Rutherford Branch Manager Gregg Najarian, who brokered the sale of the property on behalf of Western Union along with Corporate Managing Directors Slava Vaynberg, Nate Brzozowski and Brendan Fisher.

“In addition, given the site’s broader as-of-right zoning regulations, we were able to increase the buyer pool and attract multiple offers. Ultimately, we selected Tryko as the buyer due to their experience and track record of acquiring similar-type assets throughout the Northeast.”

Najarian added that the sale is reflective of northern New Jersey’s commercial real estate market as a whole. According to Q3 2020 research from Savills, the state’s office availability rate remains over 25%. With vacancy continuing to rise, he explained that many former office buildings and corporate campuses are ripe for redevelopment or alternative uses.

“It’s no secret that New Jersey is overbuilt in terms of older office product,” he said. “It presents a unique opportunity for savvy owners, like Western Union, to get creative with their real estate decisions, especially when the demographics are strong in a highly desirable area such as northern Bergen County, with its excellent location and quality of life. The market conditions also allowed for a very favorable deal for all parties involved.”

100 Summit Avenue is situated in close proximity to all major highways, including the Garden State Parkway as well as the borough’s main commercial thoroughfare, Chestnut Ridge Road.

Editor’s Note: This piece was updated on Jan. 26 at 4:15 p.m. EST to correct the what developer’s plans are with the property.  A prior version stated the asset would become an assisted living facility and in fact Tryko Partners intends to convert it into a nursing home.