PARSIPPANY — The 79,766-square-foot office building at 299 Cherry Hill Road has reached 98% occupancy following an extensive capital improvement program. The upgrades, spearheaded by Red River Asset Management, have attracted top-tier tenants and bolstered leasing activity, leading to the recent sale of the property for $10.2 million, according to an announcement by CBRE.
The North Jersey office building, strategically located off Interstate 80, underwent a major transformation, including a redesigned exterior façade, new signage on Cherry Hill Road, an electronic tenant directory, LED lighting in the main lobby, and a state-of-the-art tenant amenity center. The new amenity center features grab-and-go food service, a conference and training room, and a huddle room for collaboration. Additional upgrades included a high-efficiency boiler, an energy-efficient roof, and a repaved parking lot with six EV charging stations.
Leasing Surge Brings Top Tenants to 299 Cherry Hill Road
With more than 53,000 square feet of new leases, the building has become a prime location for medical and professional tenants. 60% of the building was converted to medical space, accommodating businesses in the growing healthcare sector. Some of the notable recent leases include:
- Unified Women’s Healthcare – Expanded from 3,041 square feet to 5,981 square feet.
- New Jersey Sports Management – Leased 4,084 square feet.
- ACRE Operating Group – Leased 5,802 square feet.
- Denville Pediatrics – Leased 5,751 square feet.
- NUVIA Dental – Leased 8,530 square feet across two floors.
Additionally, over 20,000 square feet in renewals were secured, including Kinney, Lisovicz, Reilly & Wolff (9,816 sq. ft.), Resource Realty of Northern New Jersey (3,318 sq. ft.), and Haley & Aldrich (7,071 sq. ft.).
Responsible for leasing and management, Lincoln Property Company played a key role in attracting and securing these tenants.
Sale of 299 Cherry Hill Road: A Profitable Deal
CBRE’s Charles Berger and Thomas Mallaney represented the seller, a partnership of investors led by Dan Dilmanian, Farshad Kalaty, Bruce Stern, and Mike Taylor. The building, originally acquired in 2021 for $4.5 million, sold for more than double its original cost.
“The seller made a significant investment in upgrading the property since I helped them acquire it three years ago, and we were able to sell it for more than double its original cost,” said CBRE’s Charles Berger. “The seller had converted over 60% of the building to medical tenancy, and new ownership plans to lease the remaining 1,900 square feet of office space to stabilize the property and potentially expand its medical footprint.”
New ownership, BSD Investment Properties LLC, is expected to continue the focus on medical and professional office tenants, capitalizing on the building’s strong occupancy rates and desirable amenities.
Despite economic challenges in the capital markets, CBRE’s marketing strategy generated multiple offers, highlighting the strength of Parsippany’s commercial real estate market.
Economic Growth in Parsippany
The transformation of 299 Cherry Hill Road has been praised as a major success for Parsippany’s business community. Frank Cahill, Chairman of the Parsippany-Troy Hills Economic Development Committee, emphasized the project’s impact.
“The upgrades at 299 Cherry Hill Road demonstrate how thoughtful investment and modernization can drive economic growth in Parsippany,” said Cahill. “This achievement is a testament to the strength of our local market and Parsippany’s ongoing appeal to businesses looking for a strategic and accessible location.”
With its high occupancy rate, modern amenities, and prime location, 299 Cherry Hill Road is a success story in Parsippany’s evolving commercial real estate landscape.
