Colliers said June 22 it negotiated long-term leases totaling 533,000 square feet across three properties for Atlantic Health System.
Located in Morristown, the deal is one of the largest office and medical transactions signed in the state over the last five years. In addition to the lease extensions, Colliers also secured a 32,000-square-foot expansion at 465 South St. on behalf of the organization.
A Colliers team made up of Executive Managing Director Bryn Cinque, Senior Managing Director James Bailey and Associate Stephen Graziano represented Atlantic Health System in the deals.
The three-building campus — each of which is now occupied in full by Atlantic Health System — is located at 435, 465 and 475 South St. and is home to the organization’s corporate headquarters, as well as some medical office facilities.
The buildings offer ample parking, are conveniently located near Interstate 287 and are just a mile south of the Atlantic Health System’s Morristown Medical Center.
Atlantic Health System is one of the leading nonprofit health care systems in New Jersey, and over the years its medical centers have been awarded many accolades and certifications, including Newsweek’s World’s Best Hospitals
and U.S. News & World Reports’ Best Hospitals.
“The creative and strategic restructuring of its lease enables Atlantic Health System to control the day-to-day operations of the property and recognize significant savings while tailoring the services specific for their needs as both a headquarters and medical offices,” said Cinque. “There’s not a large supply of properties that offer more than half a million square feet of high-quality, cost-effective space in the region, so we’re very happy that we were able to negotiate this deal and help keep Atlantic Health System in its home for years to come.”
“Atlantic Health System is critical to not only the wellbeing of the patients that it treats every day but to the thousands of team members that come to work every day on behalf of those patients across the state and the region,” said Robert Peake, vice president of facilities management and real estate at Atlantic Health System. “It has been a pleasure to work with Colliers to help maintain our organization’s presence in Morristown so that we can continue serving the community with a variety of best-in-class health care services.”
Cinque and Bailey have represented Atlantic Health for its real estate needs for the last eight years and also helped facilitate the organization’s recent expansions into Clark, Bayonne and Bridgewater, to help the system provide even more convenient care for its patients.
“These extensions and this expansion are a testament to Atlantic Health’s commitment to the region,” added Colliers Executive Managing Director and New Jersey Market Leader Dennis Waggner. “Representing organizations that are as important to their communities as Atlantic Health System is to Morristown is an honor and we’re all proud of Bryn and his team for their outstanding work.”
John Demarco of Schenck, Price, Smith & King LLP represented Atlantic Health System as the organization’s outside counsel.