CBRE Group, Inc., New Jersey’s largest commercial real estate brokerage firm, today announced that it has brokered a deal for Memorial Sloan-Kettering to acquire the 287,806 square vacant building at 480 Red Hill Rd. in Middletown, which previously housed Lucent Technologies. The sale and subsequent move-in by Sloan-Kettering will have a dramatic impact on the availability of office space in the Greater Monmouth County submarket. The availability rate now stands at 27.3% after closing 2012 at 48.4%. By comparison, the overall availability rate in the state is just over 20%.
The building, located off exit 114 of the Garden State Parkway, was developed and owned by Murray Construction, who gave it back to the lender, AEGON, in 2009. CBRE’s Suzanne Macnow, first vice president, and John Goodwin, senior associate, represented the owner of the property in the sale. Cushman & Wakefield represented the buyer.
Sloan-Kettering will retrofit the building into a cancer treatment center, similar to its Basking Ridge facility, with the addition of ambulatory surgeries, including medical oncology, neurological oncology, chemotherapy, radiation therapy, diagnostic radiology, surgical consultations, clinical research trials, social work, nutrition services and space for community education. Additionally, the healthcare provider will also house its main data center at the site.
As of April 1, the net absorption in 2013 has been 1.77 million sq. ft. in Greater Monmouth County. Currently there is a total inventory of 4.32 million sq. ft. in 27 buildings. These buildings average 160,125 sq. ft. with an average age of 24.
“Monmouth County is on a tremendous upswing as the list of large-scale adaptive reuse projects continues to tick upward at a fast pace in communities such as Asbury Park, Tinton Falls, and Holmdel,” states Ms. Macnow. “This transaction will take an even bigger bite into that availability rate. Developers are seeing the potential and seizing upon opportunities to find new solutions that create valuable options for outdated properties.”
Ms. Macnow, who is also representing the owner of the former Asbury Park Press building, in Neptune, in an effort to sell it for redevelopment, said more sites are expected to hit the market in these shore communities, with this trend continuing to have a major impact throughout Monmouth County and the entire state.
The Sloan-Kettering facility is expected to open in mid to late 2016, helping up to 200 patients daily with expected growth to as many as 400-500 per day. Approximately 400 jobs will be created, which is needed in the county after the loss of more than 1,000 jobs due to the closing of Fort Monmouth several years ago. Sloan-Kettering received a grant from the New Jersey Economic Development Authority for the jobs created at the data center.