Novo Nordisk, Inc., and a joint venture led by Ivy Equities
and LCOR in partnership with Intercontinental Real Estate Corporation, today
announced a $215 million redevelopment project to completely renovate and
upgrade a 770,000-square-foot office building in the Princeton
Forrestal Center
in Plainsboro, N.J.,
that will serve as the new U.S.
headquarters for the Danish pharmaceutical company.
"The decision by Novo Nordisk to maintain its American
Headquarters in Plainsboro and move into a new building is positive economic
news for the state," said Governor Chris Christie. "This project, for
one of the world's premier life sciences companies, clearly demonstrates that
the fiscal and regulatory reforms we have implemented in New Jersey are fostering an environment
conducive to growth, business expansion and job creation. I applaud Novo
Nordisk for their continued commitment to the Garden State."
The company has signed a long-term lease for the entire
building, with the initial phase of occupancy being approximately 500,000
square feet and the option to take the balance of the space within the building
at any time. The deal represents New
Jersey's largest commercial real estate transaction
this year. Construction on the redevelopment, which will create more than 500
union construction jobs, is scheduled to begin in September. The building is
located at 800 Scudders Mill Road
and will be able to accommodate approximately 1,500 employees.
Novo Nordisk will be relocating from its existing
headquarters at 100 College Road
West in Princeton,
and plans to occupy its new space in spring 2013 upon completion of the
full-scale rehabilitation. Novo Nordisk's initial lease at the new building
will expand its presence in the Princeton-area market by approximately 150,000
square feet.
"This move reflects Novo Nordisk's growth in the U.S., and our efforts in delivering leading
therapies to diabetes patients and their healthcare providers," said Jerzy
Gruhn, President, Novo Nordisk, Inc. "This smart renovation keeps us in New Jersey, reduces the
impact on our employees as well as the environment, and allows us to meet the
expanding need for our medicines."
Anthony P. DiTommaso, Jr., Co-Chief Executive Officer of Ivy
Equities, stated, "We have assembled a world-class development team with
nationally recognized LCOR and Intercontinental Real Estate Corporation to
deliver a best-in-class headquarters location for Novo Nordisk that will
effectively support the company's business objectives and provide its employees
with a sustainable, technologically advanced work environment."
LCOR and Ivy Equities will execute a top-to-bottom, gut
rehabilitation of the property that will strip the vintage 1985 building to its
skeletal frame. The plans include replacement of the building's façade, roof,
interiors and mechanical systems, and attainment of LEED certification for the
building from the U.S. Green Building Council. The renovated property will
feature state of-the-art electrical and mechanical systems. Granum A/I is the
project's exterior design architect, while HOK is serving as the architect of
record.
"This exciting, new American headquarters for Novo
Nordisk will reaffirm New Jersey's
status as the capital of the country's pharmaceutical industry," said LCOR
executive vice president Kurt M. Eichler. "Desiring to relocate to an
in-state, Class A facility, the company had explored the option of occupying a
ground-up, build-to-suit building at another location. But Novo Nordisk soon
recognized the enhanced value of the adaptive re-use approach presented by Ivy
Realty, LCOR and Intercontinental."
Peter Palandjian, Chief Executive Officer of
Intercontinental, stated, "We are thrilled to partner with Ivy and LCOR,
which are experienced, first-rate real estate firms. This is an uncommon deal
in these challenging markets; a value-add construction deal that is de-risked
on the way in, and a construction project that is 'core' before we even start.
Our tenant, Novo Nordisk, is world class and the market leader in its space.
The company's long-term commitment to the property makes this deal possible. It
is especially exciting for Intercontinental because of our union investors, who
truly stepped up for this project."
After a full search process including some of the leading
real estate investment firms, the Northeast Regional Council of Carpenters
(NRCC) hired Intercontinental in 2010 to manage a portion of the union's
pension investments in a strategic program that would invest in value-added and
construction projects in New Jersey
and the surrounding states, where they represent 30,000 members. "In these
difficult economic times, I am glad that carpenters are investing capital funds
to help finance this project," said Michael Capelli, Executive
Secretary-Treasurer of the Northeast Regional Council of Carpenters. "Not
only will this construction project create union jobs for NRCC members, the
investment will strengthen our members' pension and annuity portfolios. It is
good long-term financial strategy that provides excellent short-term
benefits." To date, in addition to the Carpenters lead investment of $55
million, the New Jersey Laborers and the New Jersey Operating Engineers have
also invested with Intercontinental for a combined amount of approximately $100
million.
Plainsboro Mayor Peter Cantu added, "We are delighted
that Novo Nordisk has made the decision to remain and expand its presence in Plainsboro
with a development project that will create jobs and deliver a high-quality
building to our township. Novo Nordisk continues to be a great corporate
citizen, and we thank them, as well as the ownership of this property, for
investing in Plainsboro's bright future."
Steven Tolkach of Newmark Knight Frank represented the
leasing efforts on behalf of Novo Nordisk. Sovereign/Santander and Wells Fargo
banks served as co-agents for the development financing. Holliday Fenoglio
Fowler, under the leadership of senior managing director Andrew Scandalios,
arranged the joint venture equity and construction financing for the
development.
"Today is a tremendous day for New Jersey's economic future," added
DiTommaso. "We are creating more than 500 construction jobs, bringing new
life to a vacant office building, and retaining a highly regarded
pharmaceutical company and its high-paying jobs here in New Jersey. We are proud to be executing on
our vision for this remarkable property, and look forward to transforming this
building into a vibrant, state-of-the-art corporate headquarters for Novo
Nordisk."