Tremendous Build-to-Suit Opportunity in Laboratory/Life Sciences/Flex-Type
Building Market with a Vacancy Rate Close to Zero;
ABS Intends to Build 350,000 Square Feet for a Total Portfolio of 700,000 Square Feet
(New York, NY – August 7, 2018)– ABS Partners Real Estate, a leading New York City-based real estate firm, today announced the acquisition, along with a group of investors, of a 50 percent interest in a six-building research & development portfolio in Princeton, NJ. The portfolio consists of 357,760 square feet spread among 201 College Road, 301 College Road, 303 College Road, 305 College Road, 307 College Road and 400 College Road (“CP1”) as well as a 31-acre parcel of land (“CP2”) that is zoned as of right for another 350,000 buildable square feet. The interest was purchased from the Zirinsky family, which is currently helmed by John Zirinsky. The announcement was made by Gregg Schenker, President and Co-Managing Partner, ABS Partners Real Estate.
According to Mr. Schenker, “For many years, our longtime business associates and friends, the Zirinsky family, had owned the properties with the Rockefeller family, but after the passing of Nelson Rockefeller’s son, Rodman, the family decided to sell certain real estate holdings, with this being one of them. Subsequently, the Zirinsky’s owned a 100 percent interest in the New Jersey portfolio subject to a land lease with Princeton University. We brought the idea of converting the land lease to fee simple ownership of the buildings to John Zirinsky and given the opportunity and our long-term relationship he agreed to accept our team as partners. We now have an exceptionally rare build-to-suit opportunity in this office market that currently hovers around a zero percent vacancy rate.”
The CP1 portfolio is comprised of five, one-story lab buildings and one two-story office building. The properties are located along the world-renowned Princeton pharmaceutical corridor, also known as “Einstein Alley.” The six buildings are 98 percent occupied by eight tenants in the pharmaceutical, biotech and medical industries.
“These are industries that are seeing tremendous growth due to macroeconomic trends, including an aging population, rising healthcare costs and disease prevention funding,” noted Jason Fein, a Partner at ABS, who was part of the team that handled the acquisition. “Research centers with the greatest activity in these areas are those in close proximity to major universities such as Cambridge, New Haven and Princeton. New York City is experiencing a similar dynamic in this sector with the massive renovation of Rockefeller University and the creation of the Alexandria Center. This is an industry that attracts top talent and provides high-paying jobs.”
“ABS brings unparalleled expertise to the partnership,” said Mr. Zirinsky. “We will work together to identify the most appropriate tenants that can take full advantage of this extraordinary opportunity. Situated on 38 acres with full entitlement to develop a total of 350,000 square feet of space in a series of buildings ranging from 75,000 square feet to 150,000 square feet each, we could construct a built-to-suit, turnkey, state-of-the-art life science building, or provide a land lease option to potential users.”
The properties are located within the state’s premier research and development, office and technology corridor, which extends from Princeton University to Rutgers University. The property is situated in the Princeton Forrestal Center, a 2,200-acre office and research park. Notable companies in the area include Siemens Corporation, Bloomberg, Church & Dwight, Dow Jones, Tyco, State Street Bank, Integra Life Sciences, Sandoz, Bristol-Myers Squibb, Otsuka and Novo Nordisk, among others.