Latitude at 369-399 Interpace Parkway in Parsippany — Courtesy: Rubenstein Partners LP and Vision Real Estate Partners
By Joshua Burd
A joint venture has refinanced the two-building Latitude campus in Parsippany, securing an $80 million loan that allows it to continue investing in the distinctive office property.
The firms, Rubenstein Partners LP and Vision Real Estate Partners, used the loan from Oak Funding and Oak North Bank to retire the existing debt on the 700,000-square-foot complex at 369-399 Interpace Parkway. The deal also provides new capital to support their ongoing business strategy, they said, noting that the amenity-laden property along Interstate 80 has enjoyed robust leasing over the last two years.
Cushman & Wakefield’s Chuck Kohaut, Brad Domenico, David Bernhaut, Alexander Hernandez, Frank Stanislaski, Bill Baunach and Jack Subers arranged the transaction, which includes upfront funding of $55 million and an additional $25 million in future advances.
“The successful refinancing of Latitude reflects both the strength of the asset and the continued demand for high-quality, amenitized office environments in well-located suburban markets,” Rubenstein Partners’ Jack Sula said. “This financing allows us to pay off the previous loan while positioning Latitude for its next phase of growth as we continue to execute our long-term plan for the campus and deliver an exceptional workplace experience for our tenants.”
Vision and Rubenstein acquired the two buildings, formerly known as Morris Corporate Center IV east and west, in early 2018 in separate transactions and subsequently integrated the structures through a new central glass atrium. That created a new, highly amenitized destination with a signature linear design that has attracted several high-profile tenants.
Activity in the last two years has included four new leases for a combined 90,835 square feet and three renewals for 99,963 square feet, the firms said. In 2022, Rubenstein and Vision sold a 155,000-square-foot condo interest at Latitude to Avis for use as the company’s U.S. headquarters, while major tenants at the property include Gilead, FM Global, Mead Johnson, Essential Homes and Sax Wealth Advisors.
“The continued support from the capital markets underscores Latitude’s position as a premier property in the northern New Jersey office market,” said Sam Morreale, Vision’s founder and managing partner. “We are pleased that this refinancing validates the quality of the asset and the strength of our long-term partnership and strategy. Together with Rubenstein, we remain committed to delivering a best-in-class campus experience that attracts and retains top-tier tenants. This new financing positions us to build on that momentum and further enhance the tenant experience as we execute the next chapter of our business plan.”
Jeremy Levart, co-founder of Oak Funding, added: “We were pleased to provide financing for one of the premier Class A office assets in northern New Jersey. Latitude exemplifies the type of institutional quality, amenity driven campus that continues to attract and retain top tier tenants, even in a challenging suburban office environment. Our conviction in the investment is grounded in the sponsor’s demonstrated execution, taking the campus from 32 percent occupancy at acquisition to over 90 percent, as well as the significant tenant capital commitments that underscore long-term demand for the property. This transaction reflects our continued focus on backing high quality sponsors and differentiated assets with durable cashflow.”
Leases by accounting firm, consumer goods giant mark auspicious start for revamped Parsippany campus
