2000 Galloping Hill Road in Kenilworth — Courtesy: Onyx Equities LLC
By Joshua Burd
Merck & Co. has sold its 108-acre campus in Kenilworth to a joint venture of Onyx Equities and Machine Investment Group, with plans to lease back the nearly 2 million-square-foot complex while it relocates in phases over the next several years.
The buyers, which announced the deal Thursday afternoon, paid an undisclosed price for the well-known property at 2000 Galloping Hill Road. They’ll now look to market the site to biotechnology, pharmaceutical and technology companies seeking to tap into the region’s highly educated labor pool and rich infrastructure, offering a wealth of high-end laboratories and support facilities across several buildings at the pharmaceutical giant’s former headquarters.
JLL’s Dan Loughlin, Jose Cruz and Kevin O’Hearn represented Merck in the deal, having first listed the campus for sale in spring 2021, while Onyx’s development team handled the transaction internally, according to a news release. The buyers did not provide specifics on Merck’s lease, but announced the deal with a note of support from Gov. Phil Murphy.
“New Jersey receives two forms of good news today as one of the pillars of our business community chooses to commit its long-term future to New Jersey and one of our leading developers prepares to build a high-tech life sciences hub, consistent with our vision for New Jersey’s economic future,” Murphy said. “I congratulate both Merck and Onyx and eagerly await the advancements they will make in our state, which will solidify our status as a national leader in the life sciences sector.”
The parties involved also touted the deal as one of the largest New Jersey office and life sciences transactions in history. In a separate announcement, Merck said it will vacate the property in phases while it completes a planned expansion at its historic headquarters in Rahway.
“This collaboration is an incredible opportunity to help reimagine the hub of life sciences while also continuing Merck’s strong history and legacy of serving patients and communities,” said Shefali Shah, the company’s global real estate lead. “We believe Onyx Equities LLC will foster long-term value, economic growth and sustainability within the community. We look forward to collaborating with Onyx Equities LLC and their team members on a smooth transition.”
Aside from more than 1.4 million square feet of laboratories, the campus has 500,000 square feet of office space, 30 acres of developable land and a 25-megawatt cogeneration plant, according to a news release. Other features include three full-service cafeterias, a fitness center, auditoriums, conference centers, outdoor amenity areas and over 3,200 surface and structured parking spaces.
“The life sciences industry is surging, and its rapidly developing technology requires new specialty facilities,” said John Saraceno Jr., co-founder and managing principal for Onyx Equities LLC. “The Merck campus represents an opportunity to host blue-chip companies that will benefit from proximity to New Jersey and New York’s highly educated workforce. We’re excited to apply Onyx’s unique asset repositioning platform to attract the next generation of life science and technology leaders.”
Onyx added that the Merck campus sits directly off Garden State Parkway Exit 138, with proximity to Interstate 78, the Route 22 retail corridor, the New Jersey Turnpike, Newark Liberty International Airport and the Port Newark-Elizabeth.
Merck officially lists 2 million sq. ft. headquarters, R&D campus in Kenilworth
