A joint venture partnership between Rubenstein Partners L.P., a vertically integrated real estate investment adviser, and Vision Real Estate Partners, a fully integrated commercial real estate investment firm, secured an $80 million refinancing of Latitude, a 35-acre, two-building trophy office campus in Parsippany, N.J.
The new loan, provided by Oak Funding and Oak North Bank, retired the existing debt on Latitude and provides new capital to support the joint venture’s continuing business strategy for the Class-A property. The financing includes an initial upfront funding of $55 million and an additional $25 million in future advances.
Cushman & Wakefield’s Capital Markets team of Chuck Kohaut, Brad Domenico, David Bernhaut, Alexander Hernandez, Frank Stanislaski, Bill Baunach and Jack Subers arranged the transaction.
“The successful refinancing of Latitude reflects both the strength of the asset and the continued demand for high-quality, amenitized office environments in well-located suburban markets,” said Jack Sula at Rubenstein Partners. “This financing allows us to pay off the previous loan while positioning Latitude for its next phase of growth as we continue to execute our long-term plan for the campus and deliver an exceptional workplace experience for our tenants.”
The property has enjoyed robust leasing activity over the last two years including four new leases for 90,835 square feet and three renewals for 99,963 square feet. In 2022, Rubenstein and Vision sold a 155,000-square-foot condo interest at Latitude to Avis which currently serves as the company’s U.S. headquarters. Major tenants leasing space at the property include Gilead, FM Global, Mead Johnson, Essential Homes and Sax Wealth Advisors.
“The continued support from the capital markets underscores Latitude’s position as a premier property in the Northern New Jersey office market,” notes Sam Morreale, founder and managing partner, Vision. “The continued support from the capital markets underscores Latitude’s position as a premier property in the Northern New Jersey office market. We are pleased that this refinancing validates the quality of the asset and the strength of our long-term partnership and strategy. Together with Rubenstein, we remain committed to delivering a best-in-class campus experience that attracts and retains top-tier tenants. This new financing positions us to build on that momentum and further enhance the tenant experience as we execute the next chapter of our business plan.”
“We were pleased to provide financing for one of the premier Class A office assets in Northern New Jersey,” adds Jeremy Levart, Co-Founder of Oak Funding. “Latitude exemplifies the type of institutional quality, amenity driven campus that continues to attract and retain top tier tenants, even in a challenging suburban office environment. Our conviction in the investment is grounded in the sponsor’s demonstrated execution, taking the campus from 32% occupancy at acquisition to over 90%, as well as the significant tenant capital commitments that underscore long-term demand for the property. This transaction reflects our continued focus on backing high-quality sponsors and differentiated assets with durable cashflow.”
