Ivy Realty

Merrill Lynch sells campus

$122M paid for site as firm reduces its presence in Plainsboro

PLAINSBORO – Merrill Lynch has sold its 1.3 million-square-foot property here and in the process made it clear that it is shifting its corporate presence in central New Jersey to Hopewell Township.

The financial services giant has sold its office campus at 800 Scudders Mill Road for $122 million to Ivy Equities of Montvale, a partnership of real estate developer from Philadelphia.

The property, part of the Princeton Forrestal Campus, had been one of Merrill Lynch’s primary locations since the mid-1980s and includes 685,000 square feet of Class A office space and 700,000 square feet of space that can accommodate office development, according to Cushman & Wakefield, which arranged the sale.

Although Merrill Lynch is a global operation that reported more than $9.9 billion in net revenue for the first quarter, it has been reducing its presence in Plainsboro for some time.

In February 2006, it announced it was entering into a deal with money manager BlackRock In. In September it merged its Merrill Lynch Investment Managers with BlackRock for a stake of approximately 65 million shares, nearly 49 percent, of the new entity. At the time, Merrill Lynch’s Plainsboro-based asset-management business had approximately 1,100 employees.

Approximately 600 of those people are being relocated to the Hopewell campus off Scotch Road, which employed about 6,000 people as of the end of 2006. The rest of the 1,100 either are being relocated to other Merrill Lynch offices in Jersey City or New York or have joined BlackRock.

Merrill Lynch spokeswoman Selena Morris said yesterday the company would have no comment beyond what was in the news release by Cushman & Wakefield.

“They’ve had a declining presence at that site for some time,” said Plainsboro Mayor Peter Cantu.

“It’s not something that comes as a great surprise,” he said of the sale.

Even earlier in 2004, Merrill Lynch sold off its nearby 452,000-square-foot Conference and Training Center to an investment group. That property, now owned by the private 900 Scudders Mill Road Associates, underwent a $6 million renovation and is now known as the Harrison Conference Center & Hotel.

Merrill Lynch will continue to lease back the entire building at 800 Scudders Mill Road until early 2008, according to Cushman & Wakefield, while it continues to reorganize operations at its campus in Hopewell. But the Plainsboro site is not destined to become vacant. BlackRock has committed to leasing more than half of the Scudders Mill Road site for an extended period according to Cushman & Wakefield.

For Plainsboro, the key is that the property will continue to be used. “BlackRock has a substantial presence of people there today, and I know the intention of the purchaser is to pursue leasing activity,” Cantu said.

“We’re all concerned about uncertainties and changes,” he said. “I’ve met with the Ivy folks and they seemed very excited about the potential for the property. I don’t see any reason for alarm over it.”

Eleven –year-old Ivy Equities specializes in investments for high-end and institutional clients, often at attractive suburban office locations.

David Archibald, executive vice president of Ivy, said they entered into negotiations with Merrill Lynch in the fourth quarter of last year. “It’s a premier office campus and we intend to maintain it that way,” he said. “The demographics from a population standpoint are growing. It has access to the eastern Pennsylvania labor market. There is tremendous infrastructure from an intellectual capital standpoint, with Princeton University, the concentration of pharmaceutical and other industries.”

Cushman & Wakefield spokesman Andrew Merin put the desirability of the Plainsboro location into perspective as well. “800 Scudders Mill Road sits directly across the street from where the Princeton Medical Center is planning to relocate,” he said in a prepared release.

Neither representatives of BlackRock nor Hopewell officials could be reached yesterday for comment.




			Merrill Lynch sells campus $122M paid for site as firm reduces its presence in Plainsboro PLAINSBORO – Merrill Lynch has sold its 1.3 million-square-foot property here and in the process made it clear that it is shifting its corporate presence in central New Jersey to Hopewell Township. The financial services giant has sold its office campus at 800 Scudders Mill Road for $122 million to Ivy Equities of Montvale, a partnership of real estate developer from Philadelphia. The property, part of the Princeton Forrestal Campus, had been one of Merrill Lynch’s primary locations since the mid-1980s and includes 685,000 square feet of Class A office space and 700,000 square feet of space that can accommodate office development, according to Cushman & Wakefield, which arranged the sale. Although Merrill Lynch is a global operation that reported more than $9.9 billion in net revenue for the first quarter, it has been reducing its presence in Plainsboro for some time. In February 2006, it announced it was entering into a deal with money manager BlackRock In. In September it merged its Merrill Lynch Investment Managers with BlackRock for a stake of approximately 65 million shares, nearly 49 percent, of the new entity. At the time, Merrill Lynch’s Plainsboro-based asset-management business had approximately 1,100 employees. Approximately 600 of those people are being relocated to the Hopewell campus off Scotch Road, which employed about 6,000 people as of the end of 2006. The rest of the 1,100 either are being relocated to other Merrill Lynch offices in Jersey City or New York or have joined BlackRock. Merrill Lynch spokeswoman Selena Morris said yesterday the company would have no comment beyond what was in the news release by Cushman & Wakefield. “They’ve had a declining presence at that site for some time,” said Plainsboro Mayor Peter Cantu. “It’s not something that comes as a great surprise,” he said of the sale. Even earlier in 2004, Merrill Lynch sold off its nearby 452,000-square-foot Conference and Training Center to an investment group. That property, now owned by the private 900 Scudders Mill Road Associates, underwent a $6 million renovation and is now known as the Harrison Conference Center & Hotel. Merrill Lynch will continue to lease back the entire building at 800 Scudders Mill Road until early 2008, according to Cushman & Wakefield, while it continues to reorganize operations at its campus in Hopewell. But the Plainsboro site is not destined to become vacant. BlackRock has committed to leasing more than half of the Scudders Mill Road site for an extended period according to Cushman & Wakefield. For Plainsboro, the key is that the property will continue to be used. “BlackRock has a substantial presence of people there today, and I know the intention of the purchaser is to pursue leasing activity,” Cantu said. “We’re all concerned about uncertainties and changes,” he said. “I’ve met with the Ivy folks and they seemed very excited about the potential for the property. I don’t see any reason for alarm over it.” Eleven –year-old Ivy Equities specializes in investments for high-end and institutional clients, often at attractive suburban office locations. David Archibald, executive vice president of Ivy, said they entered into negotiations with Merrill Lynch in the fourth quarter of last year. “It’s a premier office campus and we intend to maintain it that way,” he said. “The demographics from a population standpoint are growing. It has access to the eastern Pennsylvania labor market. There is tremendous infrastructure from an intellectual capital standpoint, with Princeton University, the concentration of pharmaceutical and other industries.” Cushman & Wakefield spokesman Andrew Merin put the desirability of the Plainsboro location into perspective as well. “800 Scudders Mill Road sits directly across the street from where the Princeton Medical Center is planning to relocate,” he said in a prepared release. Neither representatives of BlackRock nor Hopewell officials could be reached yesterday for comment.
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