1 Independence Way in South Brunswick — Courtesy: Newmark Knight Frank
By Joshua Burd
Normandy Real Estate Partners has sold a nearly 114,000-square-foot office building in the Princeton submarket, under a $19.5 million deal arranged by Newmark Knight Frank.
Brokers with NKF represented Normandy in the sale of 1 Independence Way, a fully leased, 113,998-square-foot property along Route 1 in South Brunswick. The firm also secured the buyer, Guardian Realty, which assumed the existing CMBS mortgage.
Kevin Welsh, Brian Schulz and Chuck Kohaut of NKF’s capital markets team completed the assignment with support from leasing broker Steve Tolkach. They noted that Normandy and its tenants have invested a combined $16.1 million in the property, creating a modern work environment with limited near-term capital exposure.
“Normandy Real Estate Partners was able to create substantial value by repositioning 1 Independence, driven by major capital enhancements and the execution of two long-term investment-grade leases,” said Welsh, an executive managing director at NKF. “Guardian Realty is well positioned to benefit from a durable cash flow stream and continued value appreciation, with in-place rents that are (about 15 percent) below market in Princeton’s transforming ‘live/work/play’ environment.”
Located about 10 minutes from downtown Princeton, 1 Independence Way is fully leased to S&P Global and Trimble MAPS. The users are a global financial information company and a provider of navigation software, respectively, NKF said, offering stable long-term cash flow with about seven and a half years of weighted average lease term.
The firm also touted the building’s visibility from Route 1 and its proximity to a skilled labor force and an expanding mixed-use environment.
