EAST WINDSOR, NJ–Three commercial real estate groups within CBRE pulled off a triple-play in the marketing, sale and financing of a specialty R&D building here for $4.125 million, GlobeSt.com has exclusively learned.
CBRE's Thomas Sullivan secured the listing for the 31,800-square-foot industrial research facility at 89 Twin Rivers Drive. The building is leased to Scion Companies, a generic drug maker, through 2019. California-based Apricus owned the building by virtue of its takeover of NexMed, the former occupant.
Two years ago, when Scion took occupancy of the FDA-approved facility, it secured an option to buy it, whicht extends for another three years. The ten-year-old building was significantly upgraded over the past two years at a cost of more than $800,000 to suit Scion's purposes. It has office space, lab, warehouse and manufacturing areas.
“Apricus decided it no longer needed to own the building,” says Sullivan, “and gave us the exclusive assignment to sell it, but gave us just three months.”
Thus, the challenge became: Market the site as a triple-net leased property, with specialty assets, and a tenant option to purchase, and do it fast.
Sullivan worked with his CBRE colleagues, Charles Berger and Eli Klapper of the Private Capital Group, to identify a buyer who understood the risk of purchasing an optioned property and to concoct a financing structure that could make the deal work for all parties.
When the buyer - a New York investor - and the plan were in place, CBRE's Debt & Equity Finance team of James Gunning and Donna Falzarano secured a $2,681,250 non-recourse loan at 4.25% for a 10-year term with Lakeland Bank for the purchase. They negotiated flexible prepayment options on the deal, which was crucial to buyer in light of the tenant purchase option.
“This was a high degree of cross-team collaboration for a unique, medium-sized asset,” says Sullivan, “which really shows the depth of CBRE.”
Berger says, “From an investor standpoint, we got a phenomenal price on this property, with a really nice cap' rate, commensurate with the risk. It took the work of all three groups, staying on top of things, within the very short three-month timeline given to us by the seller to make it happen.”
The due diligence process was performed simultaneously with other aspects of the transaction, he adds, in order to meet the deadline. CBRE provided no further inormation on the identity of the buyer.
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