Following Merck’s exit from Kenilworth at the start of 2024, The Northeast Science and Technology (NEST) Center is ready to get to work.

Onyx Equities LLC and Machine Investment Group will collaborate with Outshine Properties on renovation and leasing strategy for the sprawling, 108-acre campus, the partners announced Feb. 13.

A joint venture of Onyx and Machine Investment acquired the 2 million-square-foot site last February. Meanwhile, Merck consolidated its Garden State operations in Rahway. As of Jan. 1, the pharmaceutical company occupies just one building in Kenilworth.

At the time, Gov. Phil Murphy praised the developments and their potential. “New Jersey receives two forms of good news today as one of the pillars of our business community chooses to commit its long-term future to New Jersey and one of our leading developers prepares to build a high-tech life sciences hub, consistent with our vision for New Jersey’s economic future,” Murphy said in February 2023.

New York-based Outshine Properties will provide leasing and asset management advisory services to the NEST campus.

11 NEST

A 280,000-square-foot research and development plan will kickstart renovations. According to the announcement, the “11 NEST” building is tailored to the needs of life sciences companies, especially businesses working in biomanufacturing.

With more than 30 acres of redevelopment opportunities, the site already includes 1.4 million square feet of state-of-the-art laboratories and biomanufacturing facilities; 500,000 square feet of Class A office space; and a vivarium.

Additionally, the campus supports advanced data storage and processing capabilities, due to a robust utility infrastructure.

“The caliber of current lab and biomanufacturing space and related infrastructure at NEST is unparalleled nationally. Merck spared no expense in the build-out and infrastructure redundancy of its world headquarters” said Jonathan Scheinberg, managing principal and founder, Outshine Properties.

Real estate investment and development firm Outshine Properties focuses on life sciences and knowledge economy assets.

Opportunities

The project aims to attract life sciences tenants, particularly working in areas such as cell, gene and immunotherapy research. And expanded options for life sciences companies are in demand.

Last fall, Cushman & Wakefield reported that most of the sector’s vacancies (9.5% at the time) were represented by just a handful of buildings. In fact, the NEST was cited for the “much needed” lab space it will bring to the market.

With vacancies constrained, asking rents shot up to an average $38.33 per square foot in, according to CushWake’s September 2023 Market Summary report. A year before, they were in the $31-$33 range.

Kenilworth isn’t the only place where Onyx is supporting life sciences endeavors in Union County. Johnson & Johnson’s consumer business spinoff Kenvue plans to build a new, 98,000-square-foot build-to-suit lab at the company’s Summit East Campus in Summit.

“With a commitment to fostering innovation, the NEST Center is poised to become a vibrant ecosystem where ideas flourish and translate into real-world solutions. When complete, the campus will be prime for startup incubation, educational research, and even talent acquisition from regional colleges and universities,” commented Matthew Flath, senior vice president, Asset Management, Onyx Equities.

“NEST is not merely a physical space; it represents a paradigm shift, propelling educational, entrepreneurial, and employment landscapes into a future defined by excellence and ingenuity,” Flath continued.

In keeping with the NEST Center‘s aim to develop an industry hub, plans for 2024 also include hosting its first life sciences conference. In partnership with Bisnow, the event will offer life science real estate professionals discussions and insights relevant to the industry.