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Premium Capital Resources acquired this 97% leased, 303,777± SF two-building office portfolio in Paramus, Bergen County, New Jersey. Located at 115 117 W. Century Road, the buildings feature long- term leases with investment grade tenants (73% of the leased area) including Sony Electronics, Inc. (SP BBB — LXD 5/2029), Merrill Lynch (SP A+ — LXD 11/2024), and Octapharma USA, Inc. (Investment Grade Financials — Private w/o Debt — LXD 12/2034). Seller has invested over $18.4 million since purchasing the buildings in 2016 including $3.2 million in common area and amenity upgrades which consist of a new lobby and landings, shared conference center, and new elevator cabs at 115 W. Century, as well as outdoor improvements including the reactivation of the loading dock, and improved landscaping on the site. In addition to $3.4 million in Landlord’s Work, Octapharma invested approximately $12.0 million (over $180 PSF) in the 117 W. Century building. The above noted improvements, coupled with a broad amenity package that includes full-service cafeteria, fitness center, car wash, shoe shine, and dry cleaning, have led Country Club Plaza to capture 30.1% of the Class A leasing activity in Central Bergen in 2016/17. The weighted average lease term for this asset is 8.3 years overall and 11.4 years on the anchor tenants. This investment has generated 11.84% cash-on-cash returns to our investors in Year 1. Due to the contractual rent bumps these returns are projected to continue to grow Year on Year. It is noteworthy to mention that during the Covid-19 pandemic, we still managed to collect 100% rents and even sign a new 10,000 SF lease with the Rockefeller Group, further demonstrating the strength of this asset and this market.
