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P3 PropertiesWork

Office repositioning · Recapitalized

MCC Blue

A name, a lobby and 386,000 SF leased in under six months.

Parsippany, NJ530,000 SFBought December 2017Recapitalized, May 2021

The BLUE wall inside MCC Blue
The BLUE wall inside MCC Blue
Purchase price, December 2017
Recapitalization valuation, May 2021
To the recapitalization
Levered net IRR for the period

Where we found the value

  1. Identity

    It was one of the numbered Morris Corporate Center buildings. We gave it a name of its own, BLUE, and a new lobby, so it stood out.

  2. Operations

    We leased more than 386,000 SF in under six months, including TEVA’s North American headquarters.

  3. Deal structure

    We recapitalized it at a $113M valuation, against the $60M we paid, and still own it.

  4. Zoning

    We got the site approved for residential, in case it is ever needed.

  1. 01What we saw

    One numbered building among others.

    Half a million square feet of institutional-quality office in Morris Corporate Center, one of its numbered buildings, with strong fundamentals, dated space, real vacancy and nothing to set it apart.

    Core value in practiceChallenge Every Assumption

  2. 02What we thought

    Make it easy for a large tenant to move in.

    Make a major tenant’s move easy to say yes to: the BLUE name, a new lobby, café and conference center, and space ready for a headquarters.

    Core value in practiceCreative Advantage

  3. 03What we did

    386,000 SF leased in under six months.

    We leased more than 386,000 SF in under six months, including Signet, Curtiss-Wright and TEVA, which moved its North American headquarters here from Pennsylvania.

    386,000+ SF
    Leased in under six months

    Core value in practiceExtreme ProactivityRelentless Execution

  4. 04What changed

    Recapitalized at $113M.

    In May 2021 we recapitalized the campus at a $113M valuation, against the $60M we paid. The property is still owned, and the IRR covers December 2017 to May 2021. We are already working on its long-term plan, and we got the site approved for residential in case it is ever needed.

    $60M
    Purchase price
    $113M
    Recapitalization valuation
    21.99%
    Levered net IRR, December 2017 to May 2021

In photographs

  • The BLUE wall inside MCC Blue

  • The renovated MCC Blue lobby

  • The MCC Blue campus and its fountain

  • The BLUE sign on the lawn

For invited investorsThe full file on MCC Blue is private.Investors we have invited can see it, with its documents, after signing in.Investor login

Purchase, sale and recapitalization figures are property-level prices, not investor proceeds or multiples. Levered net IRRs are as reported by P3, net of expenses including P3’s 30% carried interest; no management fee was taken.

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