The sale of the campus was related to a larger deal that closed earlier this week in which private equity firms Warburg Pincus and Providence Equity Partners acquired Telcordia, a telecommunications software and services firm, from parent Science Applications International Corp. Warburg Pincus and Providence Equity are co-partners in the company's acquisition, the terms of which were not disclosed. Cushman & Wakefield's investment banking division structured and placed the transaction on behalf of the sellers.

Indeed, the co-buyers of Telcordia used the cash from the sale of the campus to help close the acquisition, according to Larry Bettino, a managing director at Warburg Pincus. "This sale-leaseback transaction proved to be an important component in our overall acquisition financing." "By converting Telcordia's real estate assets into cash, we were able to maximize our bid and in the end win the deal," Bettino continues. "The ability to execute the transaction was crucial in the success of this deal."

This transaction "reflects how private equity firms can utilize sale-leaseback financing to fund major acquisitions," says Jason Fox, a director at the New York City-based WP Carey. His company bought the asset on behalf of Corporate Property Associates 16-Global Inc., a member of the $7-billion WP Carey Group of income-generating, publicly held, non-traded REITs. "Over the years, private equity firms have come to realize the benefits of converting the real estate assets of their current and future portfolio companies into working capital."

Telcordia provides software and services for IP, wireline, wireless and cable. Besides its headquarters campus here, the company has offices throughout the US, Canada, Europe, Asia and Central and Latin America.