Eastdil Secured represented Prism in the transaction with the New York City-based institutional investor, marking New Jersey’s largest suburban office trade year-to-date.
“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,” Prism’s Eugene Diaz, principal partner, said in a statement. “The significance of this transaction further validates ON3’s emergence as a world-class, mixed-use destination.”
The 300,000-square-foot 200 Metro Blvd. 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 the affiliate of Cantor Fitzgerald has retained Prism in a management role for 200 Metro Blvd.
“We are proud of the fact that the building’s new ownership is entrusting this role to our experienced property services team,” Prism’s Edwin Cohen, principal partner, stated. “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, and sustained activity at the site has rebuilt the tenant population, attracting high-profile companies including Quest Diagnostics, Ralph Lauren Corp., 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.
Together, the 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. The site’s strategic location — just nine miles from Manhattan — and direct accessibility has provided Prism with an opportunity to create an integrated complex that speaks to the changing demands of New Jersey communities, residents and businesses. Prism’s vision for the campus build-out integrates office and R&D facilities, educational, recreational, retail, hospitality and wellness options, as well as all other uses that will comprise the 24/7 environment.