Facilitating the trade of a Morris County landmark office property, commercial real estate services firm Cushman & Wakefield has arranged the sale and purchase financing for MCCIII in Parsippany. P3 Properties this month acquired the 541,466-square-foot, Class A asset from institutional investors advised by J.P. Morgan Asset Management.
The MCCIII complex includes four interconnected, Class A buildings on a 27-acre, amenity-rich campus at 400 Interpace Parkway. The park is 62 percent leased to four occupants with an average remaining lease term of more than six years, including global credit tenants TEVA Pharmaceuticals and Ogilvy CommonHealth Worldwide.
“With this purchase, P3 Properties added to its portfolio a best-in-market, headquarters-quality office park with in-place, financeable cash flow and substantial upside,” noted Gary Gabriel of Cushman & Wakefield’s Metropolitan Area Capital Markets Group, who headed the assignment with Andrew Merin, David Bernhaut, Kevin Donner, Brian Whitmer and Andrew MacDonald. Cushman & Wakefield’s Equity Debt and Structured Finance Group, led by John Alascio and Sridhar Vankayala, arranged $58.8 million in purchase financing, including approximately $15 million of future funding earmarked for property upgrades.
The MCCIII purchase is the fifth transaction Cushman & Wakefield has completed on behalf of P3 Properties. “Working with P3 Properties is a pleasure,” Bernhaut said. “CEO and Founder Harvey Rosenblatt has a reputation as a creative dealmaker who keeps his word and brings tremendous energy to reaching agreement on terms. Those qualities were instrumental in making the acquisition of MCCIII go smoothly.”
Throughout its history, Morris Corporate Center III has benefited from the involvement of institutional owners, also including Equitable/Lend Lease, Prudential and TIAA. Bloomfield, NJ based P3 Properties, which focuses on value-driven acquisitions and property operation.
“We seek real estate opportunities where we can add value, and MCCIII presents an exciting repositioning play,” said Harvey Rosenblatt, P3 Properties CEO and founder. “We immediately will focus on leveraging the attractive acquisition cost basis to launch a significant capital plan and robust leasing program.”
MCCIII is ideally located at the intersection of interstates 80 and 287, and routes 46 and 202, providing convenient local and regional access. Retail and hotel amenities and a wide range of executive and workforce housing alternatives surround the property.
“In today’s improving suburban office market, as the aging millennial workforce increases its migration to the suburbs to raise families, it is apparent that corporate users are increasingly focused on providing a superior work environment that will enable them to attract and maintain talent,” Bernhaut noted. “The size, amenities and location of Morris Corporate Center III positions P3 Properties to capitalize on this trend by creating and offering a product that meets and exceeds that requisite.”Related Articles: