Overview

Description

23 Orchard is a ±234,351 SF, 3-story, office building located at 23 Orchard Road, in Montgomery, NJ. This asset gives investors the opportunity to purchase a high vacancy office building with upside opportunities in a desirable New Jersey submarket with an exceptional demographic profile and unsurpassed local market fundamentals.

Built in three phases from 1979-1985 and renovated in 2008, this multi-tenant office building contains ±234,351 SF within a well maintained 3-story building that features a central atrium and two lobbies. The façade is a composition of double glazed solar grey tinted windows and porcelanized panels.

23 Orchard is a former corporate facility with built-in amenity base for tenants and presents investors with a superb creative asset repositioning opportunity with mix of office, medical, research and other uses. The design of the building lends itself to both single and multi-tenant configurations and is currently contains 21 office units ranging in size from ±319 to full floor suites containing ±78k SF. Separate cores in each of the building's three phases include toilets, stairs, elevator, janitorial and mechanical/electrical rooms and small lunch/kitchen areas are also dispersed throughout each floor. Each phase was built with independent mechanical control for maximum flexibility. The Building offers highly functional office space with ±209,000 SF available for lease with ±78,000 SF full floor availability; and ±10,000 SF and ±6,000 SF pre-built/furnished suites available for immediate occupancy and upside. The Property offers abundant tenant & visitor parking with 661 surface spaces or 2.8/1,000 SF. The Property has a manageable rent roll and is currently occupied by a diverse mix of professional office users with staggered lease expirations with largest tenant expiring in 2025. 23 Orchard offers a ±30% rental rate savings vs the Princeton Class A Office inventory. The Property offers an exceptional basis reset opportunity with potential to grow occupancy from ±11% to ±90% and increase NOI to $2.7MM+.

The Property leases space to a Solar Farm (which is owned by a separate entity) with 6,000+ panels installed in 2011 spans six acres of ground and provides over 1.22 Megawatts (DC) of power to 23 Orchard Road; approximately 40% of the power to the building accounting for a $200,000/Y energy savings. A separate entity wholly owns the solar array system. The project was financed by PSE&G and supported by the 1603 Federal Grant Program. The solar canopy improvements are not permanently affixed to the Property and can be removed; Although separate entity wholly owns the solar array system, the property owner has a purchase option which allows the property owner to purchase the energy produced by the Solar Farm.

23 Orchard is located heart of the Princeton North Submarket in Montgomery, New Jersey on approximately 44 acres zoned REO-1 (“Research, Engineering and Office”). The Property is strategically positioned just minutes north of Princeton and is extremely well-located at the signalized intersection of Route 206 and Orchard Rd near the Route 518 intersection across from the future new municipal HQ. 23 Orchard offers high visibility on the heavily trafficked Route 206 (±20,000 ADT) is located in a robust trade area near a mix of retail, office, industrial and established residential communities. The Property is located only ±2 miles from Princeton Airport and ±10-min from downtown Princeton. The 20-mile stretch running along Route 1 between Trenton and New Brunswick is known as the prestigious Princeton and Rutgers Research Corridor (PARRC), which contributes to the intellectual environment surrounding the area and continues to attract companies and professionals affiliated or working with these two world-class universities.

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