P3 Properties purchases Somerset Financial Center for $42M

P3 Properties has purchased the Somerset Financial Center in Bedminster for $42 million from The Related Companies, it announced Thursday.

Cushman & Wakefield‘s Equity, Debt & Structured Finance team arranged financing for P3 from Rialto Mortgage Finance. Kevin Donner of the C&W’s New York Capital Markets Group, and David Bernhaut, Gary Gabriel and Ryan Larkin of the East Rutherford Capital Markets Group, brought the center to market and procured P3 as the buyer.

The property, comprised of 233,000 square feet, currently serves as the New Jersey headquarters of Mallinckrodt, a specialty pharmaceutical company.

“We knew from the outset that this property would draw strong interest,” Donner said. “In locating there, Mallinckrodt took advantage of this property’s ‘pharma belt’ location, accessibility, surrounding highly skilled and educated labor pool to redesign Somerset Financial Center into a premier work environment. As an investment opportunity, it offered everything that a forward-looking owner/operator like P3 Properties appreciates.”

“We approached this acquisition with the goal of diversifying our portfolio and adding another core asset,” said Harvey Rosenblatt, P3 CEO. “The tenant’s in-place long-term lease provides stability and predictable cash flow, and we love the fact that the property is a wonderful work environment that reflects nearly $50 million in recent improvements.”

P3 said it will be managing the property.

“As we expand our role in property management, one of our goals is to leverage resources across our entire portfolio. SFC is located conveniently down the road from another one of our assets, Somerset Corporate Center in Bridgewater, which will allow us economies of scale,” Rosenblatt said. “We believe our unique philosophy and hard work will allow us to continue our excellent performance in the New Jersey office market.”

Bernhaut said that Mallinckrodt, which currently has 480 employees at the center, is planning to grow and consolidate its operations there.

“Northern New Jersey represents the world’s largest concentration of pharmaceutical firms,” Bernhaut said. “Within this context, the I-78/I-287 Corridor in Somerset and Middlesex counties has always been a magnet for pharmaceutical development and research facilities. The Somerset Financial Center sale reflects the region’s continued appeal to tenants and investors alike.”