Schering-Plough will stay in the building for now, signing a short-term lease agreement, according to Todd Rechler, corporate SVP and managing director of Reckson's Short Hills-based New Jersey division. After Schering-Plough leaves, Reckson is planning a $10-million repositioning of the asset for multi-tenant use.

Reckson acquired the four-story asset at an approximate 25% discount to replacement cost on a fully invested basis, according to Rechler, and expects to generate stabilized net operating income and GAAP NOI yields of approximately 9%. The sale is part of Schering-Plough's larger strategy of repositioning its real estate occupancy in New Jersey. The Kenilworth, NJ-based company is planning to launch the development of an 88-acre site it owns in Summit, NJ.

"We are assessing all facility investments on a global basis," says Fred Hassan, chairman and CEO of Schering-Plough. "As we begin the turnaround of the company, we are determined to be efficient in our use of space and other resources."

"We plan to develop Summit into our second-largest campus in New Jersey," says Hassan, whose company also has facilities in Berkeley Heights, Branchburg, Cranford, Lafayette and Union. "The Summit site will complement our headquarters location and bring together core teams and operations."

The One Giralda Farms buy follows the acquisition, this past July, of the adjacent 141,000-sf Three Giralda Farms building. As reported by GlobeSt.com, within weeks of buying the vacant building, Reckson signed Daiichi Pharmaceutical Corp. to a full-building, long-term lease.

Both buildings are part of the multi-owner Giralda Farms Corporate Campus, a 1.25 million-sf complex that lies here and in the adjacent Chatham Twp. According to Rechler, Reckson owns another 154 acres of land within the park with development right for about 1.1 million sf. "436,000 sf are already fully designed and approved for construction," Rechler says.