MORRIS TOWNSHIP, NJ-Arch Reinsurance Co. will relocate its corporate headquarters from Morristown to Advance@Southgate at 445 South St., says co-owner Advance Realty.
Advance acquired the then-vacant building in a joint venture with Strategic Capital Partners in December 2005, and spent the next 18 months renovating it into class A space, says Advance managing director Brian Banaszynski, who represented the owner in the most recent transaction. The 320,000-square-foot project still has 30,000 square feet available, but is now effectively stabilized.
“We’re at 90% [leased] with this tenant—and it’s a great tenant, a creditworthy tenant,” Banaszynski tells GlobeSt.com. “And the tenant feels they’re very complementary to [existing tenants] Marsh McLennan and Covanta. This allowed them to redo their space, improve their location and deal with a financially stable landlord.”
Arch will relocate in April from approximately 20,000 square feet in Morristown, but the flexibility of the Southgate floor plan allowed it to reconfigure its space allocation. The existing staff will use 17,000 square feet, while a second block of 4,500 square feet will be used as a “meet-and-greet” center and visiting office location for Arch’s sister companies.
Banaszynski declined to reveal the final rent, but the asking rate for the building is $32.50 per square foot according to Internet listings. CBRE executive vice president Paul Jacobs and senior VPs Colin Reilly and David Opper represented Arch. “CBRE had a great team,” Banaszynski says.
The deal was a great way to kick off the new year, but no one should expect a soaring 2012.
“We think the marketplace will be similar in 2012 to 2011,” Banaszynski says. “There is not of lot of growth and absorption predicted.”
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