X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MIDDLETOWN, NJ-After Lucent Technologies spun off Avaya Inc. more than two years ago, the latter, which makes telecom equipment, continued to occupy a 400,000-sf chunk of space at the former’s two million-sf campus in Holmdel, paying its former parent rent for the space. But Avaya, which is based in Basking Ridge, NJ, has been looking for a place of its own, a way “to brand ourselves,” according to an Avaya spokesman.

And Avaya has found that space just a few miles down the road. The company has just signed a deal to sublease the 350,000-sf former AT&T R&D center in this adjoining Monmouth County community. AT&T had put the complex, located on Middletown-Lincroft Rd., on the market early this year, moving remaining employees at the site to another location in Middletown and to an additional facility in Parsippany, NJ.

Terms of the sublease transaction were not disclosed, although it is known that AT&T had 10 years remaining on its lease with the building’s owner, a partnership between local developer William Schaffel and Torcon Inc., a construction firm based in Westfield, NJ. According to the Avaya spokesperson, the company will begin the move-in next month, a process that’s expected to take about two months to complete.

Lucent, meanwhile, apparently has a ready use for the 400,000 sf that Avaya is leaving behind at the Holmdel location. According to a published report, a portion of the 1,500 people who currently work at Lucent’s Warren Corporate Center site in Warren, NJ will be relocated to Avaya’s soon-to-be former space in Holmdel. Still others will be moved to Lucent locations in Whippany and Murray Hill, NJ.

The 187-acre, 825,000-sf Warren Corporate Center had been sold by Lucent last fall to a venture of SJP Properties of Parsippany and PRISA, a commingled fund managed by Prudential real Estate Investors, also of Parsippany. Lucent continued to occupy the complex, but it was considered a temporary arrangement.

“We devised a plan to give Lucent the flexibility it needed to accommodate its corporate restructuring, while meeting the objectives of all parties involved,” Steven J. Pozycki, chairman/CEO of SJP Properties, said when the earlier deal closed, alluding to the suggestion that Lucent was looking to make a move. SJP has not disclosed plans for possible redevelopment and re-tenanting of the complex.

One other major neighboring piece of telecom-related space remains to be accounted for. Lucent is continuing to shop, on a sublease basis, the 275,000-sf complex located on Red Hill Rd. in Middletown that the company vacated at the end of 2001.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.