Rhodium Capital Advisors Closes $5.85 Million Acquisition of Somerset, New Jersey Office Building
SOMERSET, N.J., September 29, 2017 (Newswire.com) - Rhodium Capital Advisors today announced the acquisition of a 107,000 square feet office building in Somerset, New Jersey. Located at 100 Franklin Square Drive, the asset was acquired for $5.85 million and is another prime example of Rhodium's unique model of identifying and adding value to under-performing properties in strong markets.
Between contract signing and closing, Rhodium's proactive leasing efforts renewed in-place tenants on long-term leases and secured several new, major tenants, driving occupancy from 56 percent to 87 percent at closing. The property has a diverse tenant mix including firms in the healthcare, education, insurance, technology, and legal sectors and is in close proximity to various hotels, conference centers and restaurants. The Somerset office market is home to major employers and is easily accessible from numerous roadways and throughways.
This acquisition is further proof of Rhodium's strength in identifying under-managed assets in prime locations and creating value almost overnight. We are excited to continue pursuing this unique strategy for select assets in the metro New York area.
Daniel Shragaei, Managing Principal, Rhodium Capital Advisors
Rhodium will spend $2.4 million for tenant improvements and leasing commissions for existing tenants and the new tenants. Moreover, the business plan for the asset calls for investment of another $350,000 on building-wide capital improvements including parking lot paving, roof repairs, and bathroom and common area upgrades.
Daniel Shragaei, a Managing Principal of Rhodium Capital Advisors, said, "This acquisition is further proof of Rhodium's strength in identifying under-managed assets in prime locations and creating value almost overnight. We are excited to continue pursuing this unique strategy for select assets in the metro New York area."
Rhodium was represented by Slava Vaynberg of Cushman & Wakefield. Sol Kinraich and Ryan Goldstein of MLK Real Estate Capital arranged the debt financing. Jeffrey Zwick & Associates acted as Rhodium's legal counsel.
About Rhodium Capital Advisors
Rhodium Capital Advisors is a fully integrated real estate investment firm that focuses on value-add opportunities in the multifamily and office sectors. In the New York City metropolitan area, we acquire and operate urban multifamily assets and suburban office assets. Nationally, we invest in suburban, garden-style apartment communities in select markets. We seek to balance current income and long-term capital appreciation. Since launching in 2012, Rhodium has acquired over $500 million of real estate, in partnership with a network of private investors and institutional capital sources. For more information, visit www.rhodiumre.com.
Source: Rhodium Capital Advisors
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