October 29, 2007 - Gottesman Real Estate Partners Acquires 2 Cranberry Road in Parsippany, New Jersey
Gottesman Real Estate Partners has announced the first purchase of its new acquisition program, the 203,871-square-foot property at 2 Cranberry Road in Parsippany, NJ.

Gottesman Real Estate purchased the flex building, fully occupied by six tenants, for $19.05 million from an affiliate of AVR Realty Company, LLC, of Yonkers, NY. AVR had owned the property since shortly after its development by Turner Construction Company in 1986.

The property is ideally situated in the dynamic Parsippany market, with easy access to Interstates 80, 287 and 280, as well as Route 46 and State Highway 202. 2 Cranberry Road offers significant flexibility to tenants with light industrial, warehouse, distribution, manufacturing, and office needs. The two-story structure, built into a gentle grade, loads from all sides via 20 docks that access various modules. Ceiling heights are 22-feet clear on the first floor and 18-feet clear on the second, with generous column spacing which runs 24 feet by 30 feet.

Other amenities include an above-standard parking ratio of 1.8 spaces per 1,000 square feet and usable outdoor balconies. Gottesman Real Estate plans to further improve landscaping and visibility for the tenants.

“This is a wonderful property with which to get started,” said Andy Gottesman, CEO of Gottesman Real Estate Partners. “It is the kind of long-term asset that can deliver steady yet attractive returns to ownership without excessive debt. The location is highly desirable for distributors, as well as for office and manufacturing users who find a deep labor force in Morris County and the surrounding areas. The building itself also has been well taken care of, as shown by the satisfaction and longevity of its tenant base.”

Occupants of the building are: The Hammer Company, a leader in the field of visual communications and printing; Ingersoll-Rand Security Technologies; Aviall Services, Inc., a provider of aviation parts and a subsidiary of Boeing; Tronex International, Inc., a distributor of supplies for the health care industry; Diamonair USA, Inc., a distributor of high-quality jewelry; and The Padded Wagon of New Jersey, Inc., a moving and storage concern.

The transaction, which was brokered by CB Richard Ellis’ Tri-State Region Institutional Group, included the assumption by Gottesman Real Estate of a $12.275 million first mortgage on the property.

“We are real estate owners who believe real equity is required in real estate, which is one of the reasons this transaction fit our strategy,” said Joel S. Brudner, Executive Vice President of Gottesman Real Estate.

Gottesman Real Estate Partners, the newest endeavor for one of New Jersey’s well-known real estate families, was launched in 2007 to acquire high-quality commercial assets that could benefit from the type of hands-on management and long-term perspective that has been the family’s hallmark since 1956.