CBRE Trades 377 KSF Class A Office Building in NJ Suburb
- Dec 11, 2013
GAF, North America’s largest producer of roofing materials, is moving from its longtime Wayne, N.J., corporate headquarters to a 377,000-square-foot, Class A office building in Parsippany, N.J., in a deal described by CBRE Group Inc. brokers as “one of the largest in the state this year.”
The sales price was not released by GAF, a private company that plans to move 600 employees and contractors to One Campus Drive located in the 600-acre Prudential Business Park.
The seller, CW Capital, the special servicer for the property, also declined to give the sales price, according to Thomas Dobrowski, managing director of Rockwood Real Estate Advisors, which represented CW Capital.
Dobrowski described the deal as “a very complicated sale.” While not currently in foreclosure, the property had previously been foreclosed, he told Commercial Property Executive.
“We’re selling the fee interest in the building, the real estate, not the debt,” he said.
The building, which has been vacant since May, was constructed in 1979 and renovated in 1996. Dobrowski said Rockwood had been marketing it for about four months and had pitched it as a potential corporate headquarters.
CBRE New Jersey’s Jeffrey Babikian, executive vice president, and Brian Godau, vice president, represented GAF.
“GAF was looking to consolidate to a more efficient and vibrant environment which promotes an improved workplace for its current and future workforce,” Babikian said in a prepared statement. “One Campus Drive offers GAF that and more, including easy accessibility and prominent visibility in the heart of the Parsippany office market in a headquarters campus environment.”
GAF, which had been in Wayne for more than 30 years, will be consolidating workers from several buildings on that campus to the Morris County business park at Routes 10, 202 and I-287. The new building, set on 40 acres, is less than 20 miles from the Wayne campus.
James Murphy, GAF’s vice president for business development, told CPE it will be about 15 months before GAF moves into One Campus Drive. The company needs time to upgrade the interior for its use and give it a modern office layout. He said a budget had not yet been set for the renovations.
“The main driving factor was that it was a building available in the market when we needed it. It wasn’t too far from where we’re currently located and it has good highway access,” Murphy said. “We wanted to minimize the disruption to the employee base.”
He added that GAF had been looking for a new corporate headquarters for about a year.
Murphy concluded that the Wayne campus is owned by the parent holding company of GAF. No decision has been made regarding future plans for the Wayne property, GAF President & CEO Bob Tafaro said in a news release.
Earlier this year, GAF bought a 534,598-square-foot manufacturing building in Cedar City, Utah. The company, which plans to open the plant in 2014, expected to spend about $40 million in acquisition and upgrade costs.