PCCP, LLC announced that its joint venture with Vision Real Estate Partners, a New Jersey-based, full-service real estate investment, development and asset management company, has acquired 185 and 201 Tabor Road in Morris Plains. The acquisition is of a 66-acre corporate campus composed of two properties, one a Class A office building and the other a series of Class B and C office buildings slated for redevelopment. The seller was the previous occupant, Johnson & Johnson.
A Cushman & Wakefield Equity, Debt & Structured Finance team of John Alascio, Sridhar Vankayala, and Noble Carpenter III acted as exclusive advisor to Vision Real Estate Partners in arranging joint venture equity for the acquisition.
Built in 2006, the 240,000-square-foot 185 Tabor Road is one of the newest and highest quality office buildings in Morris County, featuring institutional quality finishes and amenities, modern base building systems, open floor plan capability, enhanced mechanical systems, and adjacent structured parking with 892 spaces. Constructed in phases from the 1950s to the 1990s, 201 Tabor Road is a series of Class B and C connected buildings totaling 644,000 square feet on approximately 45 acres. Given its age, the buyers believe the highest and best use is to demolish the existing structure and redevelop the site.
The corporate campus is situated within walking distance of the Morris Plains Train Station and 10 minutes from the intersection of Interstates 287 and 80, with immediate access to Routes 202 and 10. In addition, the property is very close to two New Jersey transit rail lines – the Morristown line with direct connection to New York City and the Montclair/Boonton line with access to Newark and Hoboken.
“Our joint venture viewed this as an opportunity to acquire a vacant high-quality asset in 185 Tabor Road at an attractive basis well below replacement cost,” said Ryan Dodge, vice president with PCCP. “We also see further upside through a redevelopment/rezoning opportunity in 201 Tabor Road, which, once repositioned, we believe that we will see strong interest from local market occupiers.”
The Tabor Road campus sits immediately adjacent to Honeywell’s new global headquarters. Its lasting pedigree has been affirmed over time, as Warner Lambert and Pfizer also have been historical owners of the property. The immediate area houses numerous headquarters, locations and campuses and diverse corporate users in the financial services, insurance, pharmaceuticals, biotech, telecommunications, electronics and transportation sectors.
“What makes the campus special is its prime location in a neighborhood where established corporate users are already flourishing,” said Vision Real Estate Partners’ Sam Morreale, founder and managing partner. “This creates great potential for redevelopment. And building upon the impressive in-place infrastructure will allow corporate users to leverage the historical capital already invested here. We look forward to launching our plans to integrate and transform the campus to offer a mix of high-tech office, lab and light industrial space in an amenity-rich environment.”
The Morris County market area is one of the most affluent and prestigious regions in the state, exemplified by the county’s ranking as the 11th wealthiest in the U.S., with an estimated median household income of $139,262. The property is located within Northern New Jersey, the 14th largest office market in the country that consists of five counties between New York City and Philadelphia: Bergen, Essex, Hudson, Morris, and Passaic.
“Vision Real Estate Partners continues to redefine the landscape of redeveloping large obsolete office campus parks in the Tri-State region,” said John Alascio, Executive Managing Director for Cushman & Wakefield. “PCCP was able to build on this investment thesis and foundation in a newly formed joint venture and will bring capital expertise and resources to execute on the business plan.”
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