Prism ON3 Building Sale Is Largest YTD Suburban Office Deal

On Jul 12, 2022

In what is considered New Jersey’s largest suburban office trade to date, Prism Capital Partners has sold the ON3 flagship office tower, 200 Metro Boulevard, Nutley, to an affiliate of Cantor Fitzgerald, L.P. for $131.7 million.

“In an era where there is less emphasis on investing in suburban office buildings, this 116-acre campus’ exceptional location, tenant roster and advanced technology achieved bar-setting results, with the region’s highest per-square-foot pricing and lowest cap rate for this sector in 2022,” said Prism’s Eugene Diaz, principal partner. “The significance of this transaction further validates ON3’s emergence as a world-class, mixed-use destination.”

The 300,000-square-foot 200 Metro Boulevard serves as Eisai Inc.’s new corporate headquarters. This spring, the U.S. pharmaceutical subsidiary of Tokyo-based Eisai Co., Ltd. relocated approximately 1,200 corporate and R&D team members to the LEED Gold building. Eisai’s blockbuster, full-building lease – signed in 2020 – brought ON3’s existing 1.45 million square feet of office and R&D/lab product to 100% occupancy. It followed Prism’s completion of extensive façade upgrades, additional building renovations and incorporation of an inviting courtyard with communal areas for social and business gatherings.

Prism already provides property management services to the building under an agreement with Eisai, and an affiliate of Cantor Fitzgerald has retained Prism in a management role for 200 Metro Boulevard. “We are proud of the fact that the building’s new ownership is entrusting this role to our experienced property services team,” said Prism’s Edwin Cohen, principal partner. “This sale continues a track record of stabilization and strategic divestment of the built product at ON3 – yet in each case we have remained involved as property manager.”

The ON3 campus formerly served as Hoffmann-La Roche’s North American Headquarters. Sustained activity at the site has rebuilt the tenant population, attracting high-profile companies across a range of sectors including Quest Diagnostics, Ralph Lauren Corporation, the Hackensack-Meridian School of Medicine, Hackensack Meridian Health’s Center for Discovery and Innovation, Modern Meadow, Y-mAbs Therapeutics, Inc., and Seton Hall University’s Graduate College of Nursing and School of Health and Medical Sciences. Today, these diverse businesses and institutions at ON3 employ more than 5,500 people.

More than 2 million square feet of additional, new space is planned for ON3, New Jersey’s largest contemplated redevelopment.

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