Global commercial real estate advisory firm Newmark Knight Frank (NKF) announces the sale of 7 Powder Horn Drive in Warren, NJ (“7 Powder Horn” or the “Property”) on behalf of the joint venture partnership between Ivy Realty and Waterfall Asset Management. The sale represents NKF’s second prominent life sciences asset sale in New Jersey in the last year (should define the other sale). Executive Managing Director Kevin Welsh, Managing Director Brian Schulz, and Associate Jason Emrani of NKF’s Capital Markets group represented the Seller in the transaction. Executive Managing Director Steven Schultz and Director Dan Reider also provided support on the deal. In addition, the team was responsible for procuring the purchaser, Thor Equities while NKF’s Debt and Structured Finance team secured acquisition financing for the purchase.
7 Powder Horn is a 181,210-square-foot specialized life sciences facility that is 100% leased to Celgene/Bristol-Meyers Squibb (“BMS”) and serves as a Clinical Center of Excellence. This strategic location is illustrated by Celgene’s 32+ years at 7 Powder Horn, including a 107,000-square-foot expansion in 2019 to accommodate its growth and recent lease extension. The Seller recently completed a capital improvement program that included a new roof, site work and HVAC upgrades.
“We are very proud to close our third major life science deal in New Jersey in the past two years. We are especially excited to acquire a first-class biological commercialization/production facility occupied by the likes of Celgene/Bristol Meyers Squibb,” said Jonathan Scheinberg and Bill Hunter, co-heads of Thor’s life science platform.
“Being situated in New Jersey’s most concentrated life sciences hub, along with the Property’s specialized infrastructure, attracted investors to this rare opportunity,” said Welsh. “Investor demand for life sciences facilities has substantially increased in the real estate market during the pandemic. 7 Powder Horn ideally supplements Thor’s growing life sciences portfolio, which includes the Center of Excellence in Bridgewater.”
According to NKF Research, 7 Powder Horn is part of 8.8 million square feet of specialized life facilities throughout Northern and Central New Jersey. Vacancy for this asset class is 15.3%, which reflects a 10% decline over the past five years. Employment in the life sciences industry in New Jersey increased by 6.9% to 80,376 over the past two years.
About Ivy Realty
Founded in 1996, Ivy Realty is a Greenwich, CT-based real estate investment, development and management company and has acquired more than $2.4 billion in assets and currently has a portfolio exceeding six million square feet of office, industrial, residential and retail properties. Ivy invests on behalf of institutional, discretionary funds in value-added investments in the Northeast U.S., Southeast Florida and Colorado. For more information, visit www.ivy-realty.com.
About Waterfall Asset Management, LLC
Waterfall Asset Management, LLC, www.waterfallam.com, is an SEC-registered institutional asset manager focused on structured credit (asset-backed securities and loans) and private equity investments. Waterfall was founded in 2005 by Tom Capasse and Jack Ross, two individuals who were early leaders of the ABS industry, and who together have over 60 years of proven ABS/Loan credit analysis, trading, banking and servicing experience. Capasse and Ross started the ABS Group at Merrill Lynch in the 1980s and conducted the first ABS issuances for many of the more than 40 ABS sectors in which Waterfall invests. Waterfall has approximately $8.3 billion* in assets under management. Waterfall Asset Management’s headquarter offices are located in New York City. *estimated as of 8/1/20
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,800 professionals operate from approximately 500 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
Discussion of Forward-Looking Statements about Newmark
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