New Jersey-based owners of 465 Columbus Ave in Valhalla said the approximately 100,000-square-foot Class A office building is near full occupancy with the additions of three tenants.
KABR Real Estate Investment Partners LLC and Capstone Realty Group Inc. announced that three divisions of Westchester Health Associates, the multispecialty physician group practice based in Katonah, recently signed 10-year leases for a total of 15,000 square feet of office space at 465 Columbus.
In addition, two divisions of Royal Philips N.V., the Dutch technology company, have signed five-year leases at the recently renovated building. Philips Electronics will lease 6,100 square feet and Philips Lighting will lease 1,100 square feet of office space.
The Valhalla building is near Westchester Medical Center, where hospital officials in June announced a $500 million, 15-year partnership with Royal Philips Electronics to provide managed services for the medical center”™s expanded health network in the Hudson Valley.
Craig Ruoff and Rick Rakow, of Rakow Commercial Realty Group in White Plains, brokered the Westchester Health Associates deal for both the tenant and KABR/Capstone. The landlord said Philips Lighting and Philips Electronics were represented by Reid Mauro, associate at Jones Lang LaSalle.
KABR and Capstone in 2012 acquired the 27-acre Columbus Avenue property from lender GE Capital after its previous owner, Westport-based Abbey Road Advisors LLC, defaulted on a $13.6 million mortgage. It was the first purchase in Westchester for the real estate partners, which target distressed commercial properties for purchase. Based in Englewood, Capstone since 2008 has purchased more than $250 million of defaulted commercial mortgages and commercial real estate, according to the company.
“The execution of leases by Philips and Westchester Health reaffirm our strategy of purchasing well-located, distressed commercial assets at the right basis, investing in significant physical improvements, and then bringing the properties back onto the market with an aggressive leasing strategy,” said Adam Altman of KABR Group in a press release.
The New York City Department of Environmental Protection leases approximately 50 percent of office space at 465 Columbus. Other tenants include Sleep Services of America and Effective Telemarketing Inc.
The owners said the three new tenants bring the property to 98.5 percent occupancy.
