Rouse Buys 650-Acre Wyeth Site for $35M

The deal has a number of interesting aspects, not the least of which is the fact that Rouse itself, known primarily for its shopping centers and master planned communities, is in the process of being acquired by the Chicago-based General Growth Properties for a reported $12.6 billion. According to a published report, Rouse actually closed on the tract at the end of June, about six weeks before the Rouse-General Growth deal was announced.

Spokespersons for both Rouse and Wyeth confirmed the sale transaction, but would not comment further on the deal or on what Rouse plans to do with the site. Local officials also confirm that before Rouse bought the site, discussions had taken place regarding redeveloping the sprawling tract with a mixed-use combination involving a general concept of office space, retail, a residential component and open space. Representatives of both Rouse and the township also say that further talks are expected to take place within the next few months.

Another interesting aspect is the sale price--the $35-million price tag--is about $10 million less than the property's current tax assessment. According to industry sources, it's also less than one-quarter of the number it was initially expected to fetch, mostly because of the amount of investment it will require to redevelop. It was sold as two separate parcels of $17.5 million each, according to Mercer County records.

The site itself, which fronts on US Route 1, is currently occupied by the vacant, 900,000-sf former American Cynamid facility which parent company BASF shuttered in late 2002. According to local officials, the site is presently zoned for a combination of office, R&D and light-manufacturing uses, and is approved for a build-out of an additional 1.5 million sf of space. Any other uses would, of course, require changes in that zoning.