HEALTHCARE

Lee & Associates’ Integrated Services team delivered a comprehensive strategic real estate review across all four campuses.

Within six weeks, we:

• Conducted asset-level analysis across owned and leased properties
• Modeled four scenario plans ranging from conservative (“No Risk”) to aggressive (“All-In”)
• Quantified projected liquidity, lease savings, and new income streams under each plan
• Delivered a clear, board-ready summary highlighting actionable recommendations and cash implications

Our strategic plans identified the opportunity to unlock up to $59 million in cash through a combination of:

• Strategic asset sales
• Lease renegotiation and consolidation
• Acquisition of lower-cost, more efficient facilities
• Redeployment of capital to core patient-focused infrastructure

Lee & Associates NJ was engaged by a leading global Asian contract research and manufacturing company offering worldclass solutions in multiple therapeutic areas. Initially, the assignment was to negotiate a lease for a previously identified building to be occupied by its early-stage US subsidiary that will mimic the offerings of its parent: offering analytics, process research, and formulation. As projected construction costs mounted and lease negotiations slowed, the assignment was revised, requiring us to identify a cost-effective alternative, preferably requiring less renovation and permitting faster occupancy.

Our team collected data and researched sites in Northeast markets using an extensive list of parameters, first and foremost, identification of existing R & D facilities with strong infrastructure and a usable kilo lab. Having narrowed the options at the parent company level, we collaborated with client’s local lab design and construction team and select operating personnel to provide an analysis of each opportunity.

Slowed by Covid-19 travel limitations, time zone issues, and other restrictions, the year-long negotiations relied heavily on our ability to educate and facilitate communication between a foreign client and a US Fortune 500 company. A sublease was ultimately achieved due to emphasis on speed to market and comparatively low of out-of-pocket expense associated with a Class A facility, while the Master Tenant simply saw a desire to reduce lease costs, particularly operating expenses, over the full lease term, and identify a tenant who would keep the building intact.

A South Korean consortium led by Hana Asset Management sought to acquire the campus as a strategic investment. The transaction involved navigating complex foreign investor financing, structuring for long-term tenant stability, and competing in a tight institutional capital market. It was the largest single-asset office sale in New Jersey in 2016.

• Advisor to the buyer (Hana/consortium): provided market intelligence, strategic positioning, and acquisition advisory support.
• Conducted detailed cash flow and lease risk analysis tied to tenant expansion rights and renewal options.
• Coordinated with capital markets teams to structure a financing package compliant with foreign investment regulations in the U.S.

• Successful $305 million acquisition of the 762,000 SF property, capped off a prime capital deployment.
• Enabled a stable, long-duration net lease with a high-credit tenant (Novo Nordisk).
• Confirmed as the largest single-asset office transaction in NJ for 2016, establishing benchmark pricing for similar pharma/R&D assets.