Morris Corporate Center III in Parsippany
By Joshua Burd
A real estate investment firm has added to its growing office portfolio in the state, acquiring a piece of the well-known Morris Corporate Center campus in Parsippany.
P3 Properties on Tuesday announced its purchase of the 541,466-square-foot, Class A Morris Corporate Center 3 from institutional investors advised by J.P. Morgan Asset Management. Terms were not disclosed.
The campus, located at the intersection of interstates 80 and 287 and near routes 46 and 202, includes four interconnected buildings on a 27-acre, amenity-rich campus at 400 Interpace Parkway, according to a news release. The park is 62 percent leased to four occupants, with an average remaining lease term of more than six years, including global tenants such as TEVA Pharmaceuticals and Ogilvy CommonHealth Worldwide.
“We seek real estate opportunities where we can add value, and MCCIII presents an exciting repositioning play,” said Harvey Rosenblatt, P3 Properties CEO and founder. “We immediately will focus on leveraging the attractive acquisition cost basis to launch a significant capital plan and robust leasing program.”
Gary Gabriel, Andrew Merin, David Bernhaut, Kevin Donner, Brian Whitmer and Andrew MacDonald of Cushman & Wakefield brokered the sale, while John Alascio and Sridhar Vankayala of the firm’s equity debt and structured finance team arranged $58.8 million in purchase financing, including some $15 million of future funding earmarked for property upgrades.
For P3 Properties, the deal comes in a year in which it also acquired the 380,000-square-foot BroadAcres office park in the township and a stake in three of the five buildings at Somerset Corporate Center in Bridgewater. The Bloomfield-based firm said its strategy focuses on value-driven acquisitions and property operation, noting that MCIII has benefited from the involvement of previous institutional owners.
“Working with P3 Properties is a pleasure,” Bernhaut said. “CEO and Founder Harvey Rosenblatt has a reputation as a creative dealmaker who keeps his word and brings tremendous energy to reaching agreement on terms. Those qualities were instrumental in making the acquisition of MCCIII go smoothly.”