Falcon Advises on the Sale of the Philips
Headquarters Building Somerset, New Jersey
Falcon Real Estate Investment Company, LP has acted as real estate investment advisor on behalf of a client in the sale of the Philips Headquarters building located at 200 Franklin Drive, Somerset, New Jersey. The property was sold on September 1, 2005 to Gramercy Capital Corp for $50,250,000.
The property consists of a 200,000 square foot, four story office building situated on a 12-acre parcel. The building was constructed in 1986 and has served as the North American Headquarters for Philips Lighting, a wholly owned subsidiary of Royal Dutch Philips, the Netherlands-based lighting and electronics giant. Falcon advised the client on the purchase of this building in December 2001 in a sale-leaseback transaction with Philips. At that time, Falcon negotiated a 20-year lease term with rental rate increases every five years.
Kenneth Lorman, a Vice President of Falcon Real Estate responsible for acquisitions in the Northeast United States, who worked on both the acquisition and disposition of this property, commented, “While our client had expected to hold this property as a long-term investment, it seemed advisable to accept the very attractive offer that was received from Gramercy Capital. It is extremely satisfying to have realized an excellent total return over a relatively short holding period.”