200 Metro Blvd. in Nutley — Courtesy: Prism Capital Partners
By Joshua Burd
Prism Capital Partners has sold the flagship office building at its ON3 campus, fetching more than $130 million for the fully leased, 300,000-square-foot tower in Nutley.
The developer on Monday said an affiliate of Cantor Fitzgerald LP purchased the 15-story property, 200 Metro Blvd., which serves as the U.S. headquarters of Eisai Inc. The deal follows Prism’s extensive renovation to the building and the blockbuster lease with the Tokyo-based pharmaceutical company, signed in 2020, that brought some 1,200 employees to the location.
It also marks another milestone for the 116-acre ON3 site, which has repurposed the former Hoffmann-LaRoche research campus along Route 3, and the iconic tower long visible to residents and motorists in the area.
“In an era where there is less emphasis on investing in suburban office buildings, this 116-acre campus’ exceptional location, tenant roster and advanced technology achieved bar-setting results, with the region’s highest per-square-foot pricing and lowest cap rate for this sector in 2022,” said Prism’s Eugene Diaz, principal partner. “The significance of this transaction further validates ON3’s emergence as a world-class, mixed-use destination.”
Eastdil Secured represented Prism in the $131.7 million transaction, which comes nearly six years after the latter purchased the campus and a decade after Roche said it would vacate its North Jersey home of more than 80 years. Prism has since repositioned much of the property while attracting major users, with tenants including Hackensack-Meridian School of Medicine at Seton Hall University and Seton Hall’s Graduate College of Nursing and School of Health and Medical Sciences, along with Modern Meadow, Ralph Lauren Corp. and Quest Diagnostics.
Eisai’s presence at 200 Metro Blvd., a landmark glass and marble tower, includes corporate and research and development teams. Prism has been providing management services to the company and will continue to do so under a new agreement with Cantor Fitzgerald.
“We are proud of the fact that the building’s new ownership is entrusting this role to our experienced property services team,” said Prism’s Edwin Cohen, a principal partner. “This sale continues a track record of stabilization and strategic divestment of the built product at ON3 — yet in each case we have remained involved as property manager.”
The real estate firm ultimately aims to build a walkable, downtown-style environment at the site with office and R&D facilities and educational, recreational, retail, hospitality and wellness space, among other uses. The deal with Eisai brought ON3’s existing 1.45 million square feet of office and life sciences space to 100 percent occupancy, coming after extensive façade upgrades, additional building renovations and the debut of a courtyard at the property.