Page 6 - RE-NJ Aug2020

4 AUGUST 2020
THE BRIEFING
MERCK SPINOFF, AIG INK LEASES FOR JERSEY CITY OFFICE TOWER
familiar with the transaction said its space will total roughly 110,000 square feet across three floors.
What’s more, Business Insider reported July 13 that the women’s health spinoff will occupy the space under an agreement with WeWork, the embattled co-working and flexible office space firm, under a deal set to last more than five years. The report identified WeWork as the lessee in
the deal with Goldman, while noting Merck will serve as the guarantor of the lease.
Additional details about the transaction were not immediately available. Goldman, which opened the 42-story tower in 2004 as part of a high-profile move into Jersey City, has been marketing several floors for sublease in recent years as it has continued to trim its footprint.
Newmark Knight Frank has served
as the listing agent for 30 Hudson,
a roughly 1.5 million-square-foot building, one of several large blocks available in the Hudson waterfront submarket. That will make the Organon deal all the more important for Jersey City and state officials, who see life sciences as a growth sector for New Jersey.
CoStar News was the first to report the company’s plan to move to 30
the vision and value proposition
of Logan North in our uncertain economic environment,” said Alexander Cocoziello, managing director of capital markets for Advance. “Our team could not be more pleased with the execution of Cushman & Wakefield and the broader sponsor team in these two deals.”
The C&W equity, debt and structured finance team included John Alascio, Sri Vankayala,
Chuck Kohaut,
TJ Sullivan
and Maya
Steinberger.
Wells Fargo is
lending just over
$69 million for
what’s known as
Building H, while
Provident is providing $34.47 million for the cold storage facility.
“Buildings H and E at Logan North Industrial Park presented lenders with the unique opportunity to finance the construction of two Class A, pre-leased industrial facilities,” said Alascio, an executive managing director with C&W. “The industrial
Hudson.
Merck announced earlier this
year that it would spin off its women’s health, legacy brands and biosimilar businesses. The company spokeswoman, Kate Vossen, said Organon would occupy 30 Hudson “upon the transaction close planned for the first half of 2021.”
With Merck serving as the guarantor, Business Insider noted that it would be on the hook financially for security or termination payments
to the landlord if WeWork exits the space before the expiration of the lease. The publication highlighted the deal as a positive sign for WeWork’s enterprise business and an opportunity to avoid a large liability, following a year of financial turmoil that included a failed IPO.
In a separate announcement, American International Group Inc.
or AIG disclosed that it was leasing space at 30 Hudson as part of a series of real estate moves in the New York area. Aside from moving its global headquarters in New York City to 1271 Avenue of the Americas, the insurance giant reportedly will occupy 230,000 square feet at the Goldman tower and 220,000 square feet at 28 Liberty St. in Manhattan, with plans to move into the three new offices in 2021.
market has continued to gain traction and demand far outweighs supply. We experienced a competitive process and, ultimately, Wells Fargo and Provident Bank set forth competitive terms that led to a seamless execution.”
In a news release, C&W said the
initial building will be the first of 10 sites to be developed at Logan North Industrial Park. Target will use the facility as a flow center to fulfill online orders and restock retail centers, employing an estimated 1,300 workers in the process.
Construction of Building E will follow immediately, C&W said. Plans call for 103 parking spaces, 44 trailer spaces and 20 dock doors as part of a building that has been preleased to Lineage Logistics, Preferred Freezer’s parent company.
“With these two assets preleased, encompassing the first 1.3 million square feet of Logan North, our partnership is currently constructing Phase II of the development to meet continued demand in southern New Jersey,” said David Greek, director of acquisitions at Greek Development.
A new Merck & Co. spinoff is moving to the Goldman Sachs tower in Jersey City, where it’s reportedly set to occupy 110,000 square feet for its global headquarters.
The pharmaceutical giant confirmed
in mid-July that the spinoff, Organon & Co., will be based at 30 Hudson
St. after the completion of a planned initial public offering next year. A company spokeswoman declined to provide additional details, but a source
The Goldman Sachs tower at 30 Hudson St. in Jersey City
JOINT VENTURE LANDS $103 MILLION LOAN PACKAGE FOR LOGISTICS PARK
A development team has secured more than $100 million in financing for the first two buildings in a planned 3.2 million-square-foot industrial park in Gloucester County.
Brokers with Cushman &
Wakefield announced July 17 that they represented the developers, Advance Realty Investors and Greek Development, in procuring the loans for the Logan North Industrial Park
in Logan Township. The transactions will fund the construction of a roughly
1.3 million-square-foot property, which is preleased to Target, and a 189,889-square-foot, build-to-suit cold storage facility for Preferred Freezer Services.
Wells Fargo and Provident Bank are providing the loans for the respective projects, which will kick off the massive development at the intersection of Interstate 295 and Route 322.
“It is a true testament to Wells Fargo and Provident Bank in understanding
A rendering of the Logan North Industrial Park in Logan Township
John Alascio
Courtesy: Cushman & Wakefield