Non-traded real estate investment trust (REIT) KBS Real Estate Investment Trust II (KBS REIT II), signed over 230,000 square feet of new leases during Q4 2014 at its New Jersey-based office park.
Park Avenue at Morris County is a six-building property that boasts tenants such as PricewaterhouseCoopers LLP and CoStar Realty Information, Inc.
KBS REIT II acquired the office park in the second half of 2008. Since then, the REIT has updated the buildings and added amenities such as a new fitness center that includes an aerobic studio, a cross fit station, and on site trainers and physical therapists. The office park also provides a fleet of private shuttles that offers transportation to the Madison New Jersey Transit Rail Station. The property features a new conference center, electric car charging stations, and an upgraded dining facility.
“We are very pleased with the response that our enhanced amenity base has received from the market,” commented Shannon W. Hill, KBS senior VP/Market Leader. “We have worked hard to create a lifestyle-focused product and major corporations have responded with long-term commitments to the Park. The leasing activity we completed in 2014 has, in my mind, validated our tenant service approach to ownership. We are excited about the future at Park Avenue at Morris County.”
KBS REIT II signed over 400,000 square feet of new leases at this property during 2014. Signing tenants to new leases with improved terms is one strategy to enhance the market value of a property.
The REIT has actively sold over 10 properties since May of 2014. Most recently, KBS REIT II sold a 723,000 square foot office property for $127 million after owning the building for just over 4 years.