7 Powder Horn Drive in Warren — Courtesy: JLL
By Joshua Burd
The owner of more than 181,000 square feet of high-end lab and office space in Warren has tapped JLL to sell the property, the longtime home of a major pharmaceutical company.
According to the listing team, Bristol Myers Squibb recently signed a 15-year lease renewal at 7 Powder Horn Drive and generates more than $3.26 million of in-place net operating income. That will equate to $60.6 million over the life of the deal, accounting for contractual yearly rent increases, while the company is planning a multimillion-dollar expansion to the existing laboratories and other improvements to the 181,210-square-foot facility.
JLL’s Jose Cruz, Jeremy Neuer, Scott Carpenter and Bradley Wachenfeld are leading the marketing team, citing the in-place triple net lease, the tenant’s long-term commitment to the building and its proximity to highways such as interstates 78 and 287 and Route 22. The firm’s Max Custer and Jim Medenbach are providing financing and leasing support, respectively.
“Originally leased to Celgene in 1987, the property is fully occupied by Bristol Myers Squibb, which acquired Celgene in 2019 and has remained committed to this location,” JLL wrote in its marketing materials. “Celgene/BMS have invested significant capital into the buildout of their space over the last 38 years and plan to convert a portion of the existing office space into technical space in the future.”
Roughly 15 percent of 7 Powder Horn Drive is lab space, JLL said. The firm also noted that the facility sits on a 24.3-acre lot that includes 433 surface parking spaces.
Additionally, the marketing materials note that the seller is offering the property free and clear of any mortgage financing or with an assumable in-place loan with a 3.2 percent rate, interest only, with 2.5 years of remaining term.
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