PARSIPPANY, NJ–Prism Capital Partners has brought in Criterion Holdings as an investment partner in its now fully-leased 399 Jefferson Rd. office building here, which it has owned off and on since 2003.
Prism executives called it the culmination of a “property success story” – many years in the making.
The company had originally acquired the 206,000-square-foot office building in 2003 as its first investment, turning around and selling it to an insurance company tenant. Prism re-acquired the property in 2010 when it was vacant.
It leased headquarters space to Pinnacle Foods in 2011 and later fit out additional space for the company, which now occupies 104,000 square feet. Inc. Magazine has named Pinnacle's space the Editor's Pick for World's Coolest Office.
In late 2012, EBI, a subsidiary of Biomet Spine & Bone Healing Technologies, signed a 102,000-square-foot lease, bringing the building to full occupancy. Biomet also signed a lease for a 28,000-square-foot expansion of the building, which was completed last year.
“We added tremendous value at 399 Jefferson through the lease-up and expansion,” said Prism's Eugene Diaz, principal partner. “Now we have taken advantage of the opportunity to replace a shorter-term, opportunistic capital source with a longer-term, stabilized cashflow partner.”
Cushman & Wakefield's Metropolitan Area Capital Markets Group – headed by Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer and Kyle Schmidt –arranged the partnership between Prism and Criterion; CBRE's Jim Gunning orchestrated the financing.
“399 Jefferson received a strong response from the investment community, which was attracted to both the asset and tenancy,” Gabriel said. He said that the combination of no “loss factor” in the transaction and the building's abundant parking, natural light, and 24/7 protected access amounts to “precisely what tenants are seeking in a suburban office building today.”
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