Jones Lang LaSalle

Sale-Leaseback on FIA Property Draws $6M
By Sean Ryan
Last updated: January 17, 2006 12:29pm

Sean Ryan is associate editor of Real Estate New Jersey.
PARSIPPANY, NJ-A sale-leaseback completed in a 1031 exchange has brought in $6.3 million for 119 Littleton Rd. here. The seller, and now 10-year tenant, is First Indemnity of America Insurance Co. The buyer is a private equity company, operating as Littleton Road Associates.
The asset, 119 Littleton Rd. is a three-story, 36,308-sf building on 2.4 acres near the intersection of I-80 and I-287. Built in 1977, the property was renovated for FIA in 1998. FIA is a subsidiary of Absco, a holding company for businesses including a surety bond firm, a healthcare adjustor and a security trading firm, all of which occupy space at 119.

Nick Savage, vice president of CB Richard Ellis’s Saddle Brook office, represented FIA in the transaction. The Weichert Commercial Brokerage team of Beth Krinsky, Judith Cohen, Philip Cantor and Aaron Mittleman represented Littleton Road. “The transaction involved a 1031 exchange buyer who understood the value in the transaction,” says Savage, “which in turn helped the seller achieve its financial goal after paying a substantial pre-payment penalty to remove the existing conduit loan.”