<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=3VY3Hw_0vlmZqwQ00" alt="https://img.particlenews.com/image.php?url=3VY3Hw_0vlmZqwQ00" width="1600" height="1000" ><figcaption>120 Mountain View Boulevard (Getty, Loopnet)</figcaption></figure><p>What’s a suburban office worth these days? A lot less than it used to be, at least in the case of one Class A office building in Basking Ridge, New Jersey.</p><p>The value of the 135,000-square-foot building at 120 Mountain View Boulevard dropped 72 percent over the last decade, according to Morningstar. The four-story property was appraised at $7.7 million in July, down from $27 million in 2014.</p><p>The building’s troubles go back even further. In 2008, a real estate investment trust linked to KBS Realty Advisors bought the property for $30 million. Despite numerous improvements and 100 percent occupancy, it traded for only $27 million in 2014, according to a KBS report.</p><p>The building was 47 percent occupied as of December, per Morningstar.</p><p>An entity tied to a Henderson, Nevada-based investment management firm was the buyer in 2014, according to property records. The Nevada firm, Quarry Capital, did not respond to a request for comment. A representative who answered the phone at Quarry said the company did not own the property but was connected to it.</p><h2>Sign Up for the National Weekly Newsletter</h2><p>It’s possible that the lender took back the keys. Morningstar servicer commentary said “it appears that the borrower is amenable to the appointment of a receiver and is also willing to turn the property over to the lender.”</p><p>The borrower defaulted on the loan and the 2001 building was transferred to special servicing in July, per Morningstar.</p><p>Like elsewhere, office occupancy levels have dropped in Northern New Jersey since 2020 and the vacancy rate is hovering around 20 percent, according to a Newmark report. The average asking rent was around $31 per square foot in the second quarter, basically unchanged from the previous year.</p><p>It’s another story in Jersey City, where the market for Class A office appears to be thriving. 601W Companies recently bought the Harborside 5 Class A office building for $85 million from Veris Residential, adding to its vast portfolio in Harborside.</p></div></body>

Mountain View, CA

NewsBreak

Suburban NJ office value drops by 72% in a decade

What’s a suburban office worth these days? A lot less than it used to be, at least in the case of one Class A office building in Basking Ridge, New Jersey. The value of the 135,000-square-foot building at 120 Mountain View Boulevard dropped 72 percent over the last decade, according to Morningstar. The four-story property was appraised at $7.7 million in July, down from $27 million in 2014.