New Jersey-based investment partners have acquired a 100,000-square-foot class-A office building in Valhalla after the previous owner defaulted on a $13.6 million mortgage.
The recently closed deal with lender GE Capital is the first in Westchester County for KABR Real Estate Investment Partners L.L.C., a real estate value-added fund in Paramus, and Capstone Realty Group Inc., an Englewood company that acquires distressed debt and defaulted commercial properties. Jerry Kiley, of Stone Harbour L.L.C. in Stamford, Conn., brokered the transaction.
The 27-acre property was acquired in 2007 by Abbey Road Advisors L.L.C. in Westport, Conn. The new owners acquired the defaulted first mortgage from the lender.
KABR and Capstone partners said they plan immediate upgrades to the three-story building, including a new café, conference room, lobby and common area improvements. It will have more than 25,000 square feet of newly built space available for smaller entrepreneurial firms or mid-sized professional companies.
“Our strategy is to purchase well located, distressed commercial assets at the right basis.” KABR partner Adam Altman said in a press release. After physical improvements, the properties are marketed “with an aggressive leasing strategy.”
The New York City Dept. of Environmental Protection leases about 50 percent of the building. Other tenants include Sleep Services of America, Effective Telemarketing Inc., and David A. Nigrelli P.L.L.C.
