Pharmaceutical Firm Novo Nordisk Signs for $215M of Space in NJ

August 2, 2011
By Nicholas Ziegler, News Editor

In a big win for New Jersey, the Danish pharmaceutical company Novo Nordisk, Inc., signed a $215 million redevelopment agreement to renovate and upgrade a 770,000-square-foot office building in the Princeton Forrestal Center in Plainsboro, N.J., that will serve as its corporate headquarters. The deal, a joint venture led by Ivy Equities and LCOR in partnership with Intercontinental Real Estate Corp., will see construction begin in September. Novo Nordisk was repped in the deal by Newmark Knight Frank.

“The decision by Novo Nordisk to maintain its American headquarters in Plainsboro and move into a new building is positive economic news for the state,” said Governor Chris Christie in a prepared statement. “This project, for one of the world’s premier life-sciences companies, clearly demonstrates that the fiscal and regulatory reforms we have implemented in New Jersey are fostering an environment conducive to growth, business expansion and job creation.”

Novo is moving from its existing headquarters in Princeton, N.J., and will expand its office footprint by more than 150,000 square feet in the state’s largest real estate transaction this year. The move comes as a relief to the state, which has largely seen a slow recovery from the recession while nearby areas such as New York City have been rebounding quickly. According to a report by Jones Lang LaSalle, New Jersey is expected to undergo slow growth, as some industry sectors are still shedding jobs. Pharmaceutical firms, along with manufacturing, communications and financial-services companies, have been leading the pack towards a more solid economy, however.

LCOR and Ivy will perform a gut rehab on the building, which was constructed in 1985. Developers plan to replace the structure’s façade, roof, interiors and mechanical systems, as well as to achieve LEED certification.

“This exciting, new headquarters for Novo Nordisk will reaffirm New Jersey’s status as the capital of the country’s pharmaceutical industry,” said LCOR executive vice president Kurt M. Eichler. “Desiring to relocate to an in-state, Class A facility, the company had explored the option of occupying a ground-up, build-to-suit building at another location. But Novo Nordisk soon recognized the enhanced value of the adaptive re-use approach presented by Ivy Realty, LCOR and Intercontinental.”