Rubenstein Mortgage Capital, the investment platform of Rubenstein Partners, said Jan. 19 it closed a first mortgage loan of up to $57 million for the acquisition, repositioning and re-leasing of 115 Tabor Road, a four-story, 465,000-square-foot office building in Morris Plains.
The initial loan funding provided a portion of the acquisition cost, enabling the borrower, an affiliate of Argent Ventures, to acquire the property from Honeywell International. Future loan advances are intended to substantially cover the cost of repositioning and re-leasing the property as a multi-tenant Class A office building. As part of this transaction, Honeywell leased-back a significant portion of the property for a term of 11 years. In addition, Global Aerospace recently executed a 27,000 square-foot, 11-year lease at 115 Tabor Road, further underscoring the regional tenant interest in the property, located within the popular Morris County submarket of the northern part of the state.
The loan was originated by Andrew Murray at RMC, the debt investment platform headed by Fred Harmeyer at Rubenstein Partners L.P. (“Rubenstein”), a vertically-integrated real estate investment advisor focused on value-add office property equity and debt investments.
“Even with the ongoing pandemic and market uncertainty, there is still a strong opportunity for alternative lending on high quality transitional office buildings that are well-positioned for value enhancement, like 115 Tabor Road,” noted Murray in a prepared statement. “The property’s location and fundamentals made this a compelling deal for RMC, while our team’s understanding of this regional market and our financing creativity allowed us to deliver a seamless execution of the loan to the borrower.”
The property was originally developed as a build-to-suit in 2007 as a headquarters facility for pharmaceutical company Pfizer. Due to the acquisition of Pfizer by Johnson & Johnson, the building sat vacant until 2015 when Honeywell purchased the property and completed a full interior renovation. As the new owner of 115 Tabor Road, Argent Ventures will now oversee the re-leasing and repositioning of the property as a standout asset in the Northern New Jersey office market.
115 Tabor Road is situated on nearly 40 acres and includes a five-story parking structure with a total of 1,335 spaces. The building offers exceptional amenities for tenants including a cafeteria, auditorium, basketball court and fitness center located on the ground floor. The well-located building is less than two miles from Route 10 in New Jersey and one mile from the Morris Plains Train Station in the Parsippany sub-market.