Disaronno Plaza is an 88,312-square-foot office property located in Somerset in Central Jersey. Built in 1984, it’s had the same ownership for nearly 30 years, until now.
On March 28, James McGuckin, regional manager of Marcus & Millichap‘s New Jersey office, announced the firm arranged the sale of the building at 80 Cottontail Lane for $7.5 million at a 5.87% cap rate.
Marcus & Millichap NJ investment specialists Chez Eider, Alan Cafiero, Brent Hyldahl and Ben Sgambati exclusively marketed the property on behalf of the limited liability company seller. Eider, Cafiero and Hyldahl also procured and represented the buyer, an individual/personal trust.
Marcus & Millichap’s New Jersey office arranged the sale of Disaronno Plaza at 80 Cottontail Lane in Somerset. – MARCUS & MILLICHAP
Disaronno Plaza offers a café, solar covered parking and is located directly off of Interstate 287.
According to a statement from Eider, senior associate of investments and lead agent on the deal, the property generated a flurry of activity during its marketing, with interest from local, regional, national and international buyers resulting in 223 confidentiality agreements, 46 tours and 16 offers.
“The buying criteria varied amongst the various buyers. Some were already in the office market looking to further expand their holdings. Others were opportunistic investors looking for buildings to occupy a portion and lease up the rest. While other buyers came from more aggressively priced asset classes, pursuing office investments to achieve a higher yield,” he said.
According to an announcement of the sale, the investor is positioned to capitalize on the value-add of leasing up the new space at a lower basis, particularly as employers bring employees back into offices.
Currently 49% occupied, Eider said the building collectively lost 17% of its tenancy over the marketing of the property. At the same time, another long-term tenant at the property expanded its space within the building.
“Despite these challenges, the buyer performed by meeting aggressive terms, with a large deposit becoming non-refundable at the end of a short seven-day due diligence period,” Eider said.
Financing was led by Joseph Belgiovine of Marcus and Millichap Capital Corp.
