Expansion Will Double BMW's HQ Campus

Right next door at 300 Chestnut Ridge Rd., BMW had outgrown its similarly-sized North American headquarters and, in fact, had leased space at two other nearby buildings to handle the overflow. So it was just a matter of time before the two companies hooked up to make a deal.

Indeed, BMW has closed on the acquisition of I-R's property, paying the manufacturing conglomerate $18.5 million for it, and has announced plans to link the two sites into one campus. I-R is moving to new quarters in nearby Montville, NJ, and under the terms of the sale, BMW will lease the building back to I-R through the end of this year, until the latter's new quarters are ready.

At that point, BMW will launch a renovation/expansion program at its newly acquired asset. The cost of the project has not been disclosed.

The latest transaction also brings the combined 85-acre tract full circle. The existing BMW complex here was built on 42 acres the automaker had acquired from I-R back in the late 1980's.

When I-R first put the property on the market in 2002, vice president and treasurer Peter Hong told GlobeSt.com that his company was "exploring all of the alternatives for utilizing its value. We have not made a decision to move, and we are looking at all kinds of alternatives."

I-R did ultimately decide to move, paving the way for BMW's consolidation of the two sites. The automaker will convert the I-R building into a combination of offices and training facilities in a project that's expected to take about a year, according to company officials. Further details will be released at a later date, officials say.

The site search for BMW's expansion, which ultimately didn't have to go very far a field, was conducted by SJP Properties of Parsippany, NJ. SJP, which is perhaps better known for developing and acquiring office properties for its own portfolio, is also serving as the developer and consultant for BMW's expansion, including facilitating the necessary approvals.

Altogether, BMW of North America has about 2,000 employees in the US, with approximately 750 of them in New Jersey. All local employees will be housed at the newly expanded campus.