Cushman & Wakefield Arranges $16.5 Million Sale of Revlon R&D Center

March 2, 2012 - PRLog -- EDISON, N.J. – Cushman & Wakefield’s Metropolitan Area Capital Markets Group (CMG) has orchestrated the sale of 2121 Route 27, a 99,000-square-foot R&D and office building, for $16.5 million. Fully occupied by Revlon and utilized as the consumer products giant’s primary R&D center, the building is part of Edison Towne Corporate Center, combining office and industrial uses.

The East Rutherford, N.J.-based Cushman & Wakefield team of Andrew Merin, David Bernhaut, Gary Gabriel and Jared Zimmel represented the seller, The Morris Companies. The buyer was Angelo, Gordon & Company on behalf of the $560 million AG Net Lease Realty Fund, II, one of a series of net leased investment funds managed by the firm.

Edison Towne Center also encompasses a 248,000-square-foot multi-tenant office building at 2147 Route 27, connected to the Revlon R&D facility by a common lobby, as well as a 140,000-square-foot industrial building and land approved for an additional 650,000 square feet of industrial space. In addition to the R&D center, Revlon occupies 31,500 square feet within the adjacent office building.

“After acquiring the property two years ago, The Morris Companies was able to extend Revlon for 15 years through 2025 and complete a significant renovation of the office building,” said Merin. “It was subsequently decided that the two buildings would be offered for sale, and the disposition of the R&D building has now been completed. The multi-tenant office building attracted considerable interest from prospective buyers, and we expect to have an announcement on that sale shortly.”

“The R&D building is net-leased on a long-term basis, while the office building is approximately one-third leased and offers a value-add opportunity,” said Bernhaut. “It was determined to market the buildings separately because a high-adverse investor would be interested in acquiring the Revlon lease, while the buyer who does want to take on risk would be more interested in the value-add opportunity. That same capital does not generally reside in the same place, and it was decided that the best way to maximize value would be to sell the properties separately.

“The Morris Companies has been very focused on the industrial development component of the site,” said Bernhaut. “Once they were able to renovate the building and re-sign Revlon, they were prepared to monetize the asset and, that accomplished, move forward on the industrial development and redevelopment potential at Edison Towne Corporate Center.”

Situated off Exit 2 of I-287 and two miles from the New Jersey Turnpike, the buildings are located in the Princeton/Route 1 research corridor, dubbed Einstein’s Alley. The just-sold Revlon R&D facility was constructed in 1984 and always has been occupied by the company. The office building, the sale of which is pending, was built in 1980 and substantially renovated in 2010. Besides the 31,500 square feet occupied by Revlon, the office building’s major tenants include XO Communications and Dr. Leonard’s Healthcare.

Cushman & Wakefield’s Metropolitan Area Capital Markets Group specializes exclusively in investment sales of office, industrial, multifamily and retail properties throughout New Jersey, New York, Fairfield County, Conn., and Pennsylvania. The team has completed more than $15.7 billion worth of transactions since 2000.