BASKING RIDGE, N.J. — Cushman & Wakefield has closed a sale-leaseback transaction valued at $650 million for the 1.4 million-square-foot Verizon operations center in Basking Ridge. Cushman & Wakefield’s real estate investment banking group worked closely with its New York brokerage and New Jersey investment sales teams to arrange the transaction.
Cushman & Wakefield acted as financial advisor and exclusive placement agent for Verizon on the transaction, which represents the largest sale-leaseback ever completed in suburban New Jersey. The sale value represents one of the highest sales prices per square foot of any suburban sale-leaseback in the United States, according to media reports.
Mesirow Realty Sale-Leaseback Inc., a division of Mesirow Financial, a financial services firm headquartered in Chicago, acquired the facility, which employs 3,900 full-time employees.
“This real estate deal provides our company with immediate financial benefits and allows us to extract significant value from this asset while continuing to occupy the entirety of its office space,” says John Vazquez, senior vice president and head of global real estate for Verizon. “Cushman & Wakefield achieved our strategic objectives by maximizing value and flexibility through the best possible deal structure.”
As part of the transaction, Verizon will lease back the entire facility from Mesirow for a 20-year term. The campus houses a range of businesses within Verizon Communications and also serves as headquarters for Verizon Wireless.
“We delivered an execution that optimized financing terms for the purchaser through a carefully crafted, credit tenant lease,” says Michael Rotchford, executive vice president of Cushman & Wakefield. “This structure successfully delivers current and long-term value for both Verizon and Mesirow.”
After acquiring the headquarters in 2005, Verizon made a significant investment in upgrades to the headquarters complex.
Led by Rotchford, the Cushman & Wakefield investment banking team included David Wenk, Robert Elms and Mark Todrys. The team worked in conjunction with both Kuriloff and with David Bernhaut, vice chairman of the Cushman & Wakefield capital markets group in New Jersey. Cushman & Wakefield maintains its relationship with Verizon through its Corporate Occupier and Investor Services (CIS) group.
Vazquez, along with James Tousignant and Robert Haines, led the Verizon team. DLA Piper served as counsel for Verizon under the leadership of Mark Hurel.
Garry Cohen and Douglas Barker led Mesirow Realty Sale-Leaseback Inc., with legal representation offered by Goldberg Kohn.
Cushman & Wakefield is a privately held commercial real estate services firm headquartered in New York City. The firm owns approximately 250 offices in 60 countries and has more than 16,000 employees.
Verizon is a broadband and telecommunications company. It is the largest wireless communications service provider in the U.S.
— Haisten Willis