Prism Capital Partners has sold one of the life science buildings it has developed on the old Hoffman-LaRoche pharma campus in Nutley for $36.75 million.
Cushman & Wakefield’s East Rutherford office brokered the sale to Chicago-based investment firm, Harrison Street, which has retained Prism to continue to manage the building at 111 Ideation Way on its ON3 campus.
The 157,000 s/f state-of-the-art life sciences R&D and laboratory facility is fully occupied and serves as an anchor for the 116-acre ON3 redevelopment site that spans the Township of Nutley and City of Clifton.
The four-story property houses several blue-chip tenants, including the Hackensack Meridian Health Center for Discovery and Innovation, a National Health Institute-designated Clinical Research Center; Modern Meadow, a biofabrication research and development company; and Y-mAbs Therapeutics, Inc., a biopharmaceutical company.
“As ON3’s flagship lab facility, 111 Ideation Way speaks to the market’s sustained demand for modern R&D space,” said Prism’s Eugene Diaz, principal partner. “Our vision is that ON3 will continue to evolve into a vital hub for industry leaders in life sciences and biotech.”
The campus also serves as the future home of Quest Diagnostics’ 250,000 s/f diagnostic testing laboratory, currently under development.
Cushman & Wakefield’s Andrew Merin, David Bernhaut, Gary Gabriel, Frank DiTommaso and Kyle Schmidt brokered the sale, with support from John Alascio and Sridhar Vankayala of the firm’s Equity, Debt & Structured Finance team.
Merin noted, “The sale of 111 Ideation Way is a strong example of how specialized life sciences product is in high demand within the real estate capital markets. This transaction also further validates ON3’s emergence as the leading center for life sciences/medical facilities.”
Harrison Street is a leading investment management firm focused on real estate properties in the healthcare delivery and life sciences disciplines.
“The ON3 campus is the ideal convergence of education and life science, two pillars of Harrison Street’s investment thesis, and we are thrilled to join the park stakeholders with our acquisition of 111 Ideation Way,” said Mark Burkemper, senior managing director. “We look forward to supporting HMH, Modern Meadows, and Y-mAbs as they fulfill their missions making a positive societal impact.”
The ON3 campus sits just off Route 3 in one of the Garden State’s busiest commercial real estate markets.
Considered the state’s largest “contemplated redevelopment” the site formerly served as the North American headquarters for Hoffman-LaRoche. Prism acquired the site for almost $88 million when the pharma giant shut down in 2016 and has a master plan to turn the 116-acre parcel into a “new urbanist” community of office, R&D, residential and retail along with potential lodging and entertainment concepts. Prism expects that more than 5,500 people will be employed at ON3 by 2021, and ongoing redevelopment is creating hundreds of construction jobs.
Current ON3 tenants include Eisai Inc., Ralph Lauren Corporation and Seton Hall University’s Graduate College of Nursing and School of Health and Medical Sciences.
Construction is scheduled to begin in the first quarter of 2021 on an 80,000 s/f medical office building that has been pre-leased by Hackensack Meridian Health, which already occupies academic, and research and development space at ON3.
Eugene Diaz said the building will occupy a parcel on the southeast corner of Metro Boulevard and Route 3 in Clifton. It will include an ambulatory surgical center as well as additional multi-specialty practice areas.
Hackensack Meridian Health already occupies academic, and research and development space at ON3,
According to Prism, the four-story facility, designed by Gensler, will include an ambulatory surgical center and feature a glass curtain wall façade and attached parking garage with 400 parking spaces.