The developer who recently acquired a 14-acre site with a 117,000-square-foot office building in Morris County is considering the possibility of housing development near Interstate 287. Josh Mann, co-founder of Iron Ore Properties LLC, expressed interest in initiating discussions with local officials and residents about this potential project.
Rezoning efforts for office spaces have historically taken years, as seen with the former Toys R Us headquarters in Wayne. This resistance is often labeled as "NIMBYism," where locals oppose nearby construction projects like housing or warehouses.
Hanover’s mayor, Thomas “Ace” Gallagher, has not yet commented on the proposed housing at Cedar Knolls. However, Mann highlighted that combining office and residential spaces is not unprecedented. In March, developers revealed plans for luxury apartments at an office complex in Berkeley Heights near Interstate 78.
“You create a campus,” Mann stated in an interview. He emphasized the advantage of developing existing sites rather than greenfields.
In Cranbury, Middlesex County, officials are attempting to repurpose historic farmland for affordable housing amidst public opposition and legal challenges from landowners.
Mann noted that the Cedar Knolls property is already developed with infrastructure like parking lots. The sale price remains undisclosed by Iron Ore but was previously $9.35 million in 2018. Subsequent upgrades included elevators, heat pumps, bathrooms, and a lobby renovation. The building also features amenities such as a cafeteria, conference center, and gym.
James Hughes from Rutgers University observed that many suburban office buildings emerged along Interstates 80 and 287 during the 1980s but lost appeal even before COVID-19 shifted work trends towards urban centers and remote work. Some suburban offices have since been converted into apartments or warehouses.
Jeffrey Otteau of Otteau Group Inc., a real estate consultancy firm based in Old Bridge, explained that Class A offices attract high-quality tenants due to their modern design and facilities. In contrast, Class B and C offices are older and less desirable. The Cedar Knolls building is classified as Class A by LoopNet.
