APX MORRISTOWN OFFICE COMPLEX
412 Mount Kemble Avenue, Morristown, NJ 07960
BORROWER’S DESIRED RESULT
Sponsor Keystone Property Group sought a long-term, fixed-rate, custom-tailored refinancing solution to replace an existing mortgage. It selected 3650 to benefit from its flexible, creative loan structuring and certainty of execution.
3650 REIT originated this $66 million loan for experienced sponsor and repeat borrower Keystone Property Group, which owns 8 million square feet of commercial real estate throughout Delaware, Florida, Pennsylvania and New Jersey. The loan provided long-term financing for the APX Morristown office complex, which underwent extensive renovations from 2015 to 2018, including: an updated atrium and canopy, a refreshed parking zone, modernized restrooms, and new elevators. The high-quality tenancy at the building is reflected through its notable tenants with established national headquarters at APX Morristown, such as: Berkley Surety Group, General Insurance Company, Lonza America, Louis Berger Group Inc., New York Marine and P3 Communications Inc. The affluent Morristown submarket has remained strong in recent years, experiencing Class A office rent growth, which is expected to continue, and a significant decrease in vacancy rate. The complex enjoys easy access to Downtown Morristown, Newark International Airport, and New York Pennsylvania Station.
LOAN AMOUNT: $66 million
LOAN TYPE: 10-Year
ASSET: Class A Office Complex
• Highly amenitized office complex, extensive capital improvements completed in 2018
• Strategically located near Downtown Morristown, featuring dining, shopping, entertainment and nightlife options
• Easy access to Newark International Airport and New York Penn Station via Morristown train station
• High occupancy and strong tenancy featuring multiple U.S. headquarters
• Robust submarket with steadily climbing rental rates, falling Class A office vacancy