Two companies have signed deals to locate in large previously vacant office spaces in the area — Dr. Reddy’s, a generic pharmaceutical company, which is moving into Princeton Forrestal Center, and Lam Cloud Management, a data center provider taking a significant space at Exit 8A.
Dr. Reddy’s, based in Hyderabad, India, will move its U.S. operation from Bridgewater to a 100,000-square-foot space at 107 College Road East. The previous occupant, Bracco Diagnostics, moved to Prospect Plains Road in Monroe near Exit 8A.
Thomas Romano, executive managing director of Colliers International, was quoted in a real estate industry newsletter saying that the Dr. Reddy’s deal is one of a number of positive recent developments. “Just within the last few weeks we have had very nice things happening in this market,” he said. “We are seeing more tenants out looking right now.”
Romano says that the new 770,000-square-foot Novo Nordisk headquarters at the former Merrill Lynch building at 800 Scudders Mill Road, and the new Holiday Inn Express and Crown Plaza hotels, also on Scudders Mill Road, offer the region “a new energy.”
Lam, meanwhile, recently signed a 25-year lease at 1 Farr View Drive on a 42-acre property in Cranbury and is converting the building into a collaborative center for technological innovation. The 495,000-square-foot office was built in 1988 for Continental Insurance and was most recently occupied by Aetna.
The conversion calls for a 40,000-square-foot conference center including a 15,000-square-foot multi-tiered assembly area with a stage, podium, and breakout rooms. Also planned are private parking, kitchen, and an executive office center leased to small tenants.
Currently, Lam has five employees working at the facility.
The lease was arranged for Lam by William Klein of Kay Realty, and the building’s owner, the Sudler Companies, was represented in-house by Steven Spinweber.
“The building had been vacant for four years, and Lam has been looking for a site for more than three years,” said Klein in a company release. “Ultimately, this was a near-perfect solution for both the tenant and the landlord.”
According to Spinweber, the building has 100,000-square-foot floor plates, and “the current office market does not support those kinds of space demands and probably won’t for the foreseeable future.”
Sudler began thinking about other uses for the building and even considered tearing it down and building a distribution center, said Spinweber.
He added that once Lam expressed interest he was able to speak “candidly” about the challenges and potential of converting the structure since Sudler has worked on other data center projects in the past.
“This is a particularly innovative adaptive re-use,” said Klein.
Lam Cloud Management, 1 Farr View Drive, Cranbury 08512; 888-936-5262. Lawrence Lam, president & founder. www.lamcloud.com.
Dr. Reddy’s Laboratories, 200 Somerset Corporate Boulevard, Bridgewater 08807; 908-203-4900; fax, 908-203-4940. G V Prasad, chairman & CEO. www.drreddys.com