Newswire

JLL Income Property Trust Acquires NJ Life Sciences Facility

170 Park Avenue

JLL Income Property Trust has acquired 170 Park Avenue, a 147,000-square-foot, purpose-built life sciences building in Florham Park, New Jersey, for approximately $47 million. The property is net-leased on a long-term basis as premier laboratory space and the corporate headquarters for Celularity Inc., a clinical-stage biotechnology company.

“Within the office sector our priority investments are healthcare oriented, focusing on medical office and life science properties,” said Allan Swaringen, president and CEO of JLL Income Property Trust. “In a post-COVID-19 environment of eroding fundamentals for traditional multi-tenant office properties, these two healthcare-oriented sectors stand out for their lower vacancy rates, healthy net absorption and balanced new supply due to significant barriers to entry because of higher construction and tenant improvement costs. These factors also lead to higher tenant retention even during periods of weakness within traditional office market environments.”

The lease term is for 15 years and provides for an average of 2.5% annual rent increases.

With over 3,200 life science companies, New Jersey is a major biopharmaceutical and drug development hub within the U.S., JLL observed. The New Jersey life science market totals in excess of 17 million square feet of research, development and lab space ranking among the top markets in the country behind Boston, San Francisco and San Diego. This area boasts a highly skilled workforce with a robust pipeline for STEM graduates from nearby colleges and universities. Global big-pharma companies in this area include Bristol-Myers Squibb, Celgene, Merck, Bayer, Allergan and Teva Pharmaceuticals. New Jersey has an established market for life science space due to the employment talent pool, infrastructure, affordability and tax incentives, the company said.

170 Park Avenue is located on more than 18 acres in The Green at Florham Park, a 270-acre master planned mixed-use office park, which includes tenants such as BASF’s North American Headquarters and the New York Jets headquarters and training facility. This investment is JLL Income Property Trust’s second acquisition in the healthcare sector in this market following its 2016 purchase of 140 Park Avenue, a newly-constructed 100,000-square-foot medical office building leased on a long-term basis to Summit Medical Group.

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