PARSIPPANY, NJ—The IMS Health global headquarters at 100 IMS Drive, Parsippany, NJ, has been sold to a Washington, DC-area developer for $22.2 million, in a deal brokered by Stan Johnson Company. The medical office building consists of 83,477 square feet on 2.92 acres.
Joshua Pardue, CCIM and Tom Georges of Stan Johnson Company represented the seller, Commercial Realty Group Inc., and the buyer, Maryland Associates Limited, in the transaction. IMS Health will remain the tenant at the property.
"We are pleased to have had the opportunity to work with a leading New Jersey-based value-add developer. We assisted in the restructuring of the existing lease to create product that was well received by today's active net lease market," says Pardue, director of Stan Johnson Company's New York office. "We are confident that the lease extension and restructure process created significant incremental value for the seller, while also allowing us to facilitate the investment needs of a top-tier private buyer based out of the DC market. We are seeing today's compressed cap rates create win-win-win scenarios, where the tenant can reduce occupancy costs or achieve other facility needs, while we create long-term net lease assets that meets the investment market's needs. This allows our sellers to achieve an unprecedented exit price."
Pardue tells GlobeSt.com exclusively that before the sale, IMS Health was on a shorter term lease.
"We worked with the sellers to restructure the lease to maximize the value that today's triple-net market would pay," he says. "The new owners is a private investor that intends to hold the asset unleveraged for the long term, and clip coupons."
The lease is guaranteed by IMS Health, a publicly traded health company.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
