Deloitte signs lease as anchor tenant of Morristown’s M Station

M Station, as envisioned by the Gensler design firm, 2019.
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Surprise, surprise!  Deloitte has signed a lease with Scotto Properties for 110,000 square feet of space at M Station, the office redevelopment that will replace the Midtown Shopping Center strip mall on Morris Street in Morristown.

Deloitte lobby at M Station, as envisioned by the design firm Gensler, 2019.

“Our transition to M Station reflects Deloitte’s commitment to our people, to our clients and to New Jersey,” Paul Krieger, New Jersey managing partner, Deloitte LLP, said in a statement on Tuesday.

“This space will promote a collaborative, sustainable work environment that will help us serve clients with distinction, while anticipating the needs of today’s workforce.”

Deloitte has been pitched, privately and publicly, as the project’s anchor tenant since its inception.

BEFORE: This is how Morristown’s Midtown Shopping Center looks as of June 2019. A developer wants to erect nearly 400,000 square feet of offices and retail space here. Photo: ScottoProperties.com

The Big Four accounting firm will relocate from Parsippany, and will occupy floors two through six of M Station East. Retail is planned for the first floor. It’s one of two office/retail buildings, totaling about 400,000 square feet, scheduled for the site.

Plans also call for a parking deck, two plazas, a promenade, and a traffic “roundabout” at Morris and Spring streets.

Rendering of M Station, courtesy of SJP Properties.

The lease is contingent upon the project receiving  municipal approvals. The town council gave its blessing in October. Now, planning details are being worked out.

This redevelopment is a joint effort of SJP Properties and strip mall owner Scotto Properties.

Deloitte has been a sought-after prize; the Silverman Group is suing town officials claiming they scuttled its deal to relocate Deloitte to South Street. Mayor Tim Dougherty has countered that he will fight such plans to “shoehorn giant buildings in the middle of our quaint downtown.”

M Station pedestrian promenade: Rendering courtesy of Gensler, 2019.

Proponents say M Station will bring good jobs to the area, boost area businesses, and improve traffic flow with the roundabout.

Critics have raised concerns about gentrification, and the loss of affordable fast-food restaurants at the strip mall.

At least one of those restaurants, the Morris Pizzeria, has announced plans to move. This spring it’s bound for 161 South St., former home of the Boutique 161.

Below is the full statement from Deloitte. And here is the project’s website.

Promo video for M Station:

 

From Deloitte and SJP Properties:

Deloitte Signs 110,000-SF Lease at Proposed M Station Mixed-Use Redevelopment in Downtown Morristown, N.J.

Morristown, N.J.  (Jan. 14, 2019) – SJP Properties and Scotto Properties today announced that professional services organization Deloitte has signed a lease for 110,000 square feet at M Station, a proposed mixed-use redevelopment comprising two headquarters-quality, class A office and retail buildings in downtown Morristown, N.J. The lease is contingent on SJP and Scotto receiving full municipal approvals for M Station.

Designed by architecture firm Gensler in close collaboration with SJP, M Station is poised to be Morristown’s most significant commercial development in more than 30 years. The development intends to invigorate Morristown’s downtown, attracting high-quality commercial tenants that will support neighborhood retailers and restaurants, while delivering new retail options and enhancing the pedestrian experience with the creation of a tree-lined promenade along Morris Street, as well as critical infrastructure improvements.

“We are thrilled to have an organization of Deloitte’s caliber as the anchor tenant for M Station,” stated Steve Pozycki, founder, chairman and CEO of SJP Properties.

“To the credit of Morristown’s leadership and its vibrant business community, Morristown has firmly established itself as a world-class town, with a charming downtown district, Midtown direct train service, and excellent housing options. M Station will complement these attributes by delivering class A office space that will energize downtown businesses during daytime hours, creating a true ‘live/work/play/stay’ environment in Morristown.”

Deloitte plans to relocate its operations in Parsippany, N.J., to M Station, and will occupy all of the office space — floors 2 through 6 — of M Station East, which is planned to be six stories and approximately 120,000 square feet, including 10,000 square feet of first-floor retail space, as well as lobby and building services areas.

M Station West is planned to be seven stories and approximately 253,000 square feet, which includes over 230,000 square feet of office space and 23,000 square feet of retail, plus lobby and building services areas.

“Our transition to M Station reflects Deloitte’s commitment to our people, to our clients and to New Jersey,” said Paul Krieger, New Jersey managing partner, Deloitte LLP. “This space will promote a collaborative, sustainable work environment that will help us serve clients with distinction, while anticipating the needs of today’s workforce.”

Designed to achieve LEED certification, M Station’s two buildings will be bridged by a 1,000-car parking structure that will be constructed in two phases and include public parking for the development’s on-site retail.

To enhance the pedestrian experience, the two buildings will be set back from Morris Street a generous 45 feet to create a landscaped pedestrian promenade and two public plazas with seating, improving the area’s walkability, particularly between the nearby New Jersey Transit station and The Morristown Green.

The development team has also planned a roundabout for the intersection of Morris and Spring Streets to reduce the queuing and congestion of cars entering and leaving The Green, making it safer for both drivers and pedestrians.

Cushman & Wakefield brokered the lease transaction for both parties. David Stefancic, Lexis Livengood, Ben Brenner and Josh Cohen represented Deloitte, while Robert Donnelly, Robert Donnelly, Jr. and Brian Decillis represented SJP and Scotto.

Situated within an area slated by Morristown for redevelopment, M Station will replace a retail strip center located on Morris Street between Lafayette Avenue and Spring Street. For more information about M Station, please visit mstationmorristown.com.

About SJP Properties

Headquartered in New York City, SJP Properties is a vertically integrated commercial and residential real estate owner, developer, investor, asset manager, construction manager and property manager. The expertise of the company’s core in-house team of professionals encompasses the entire development process, from site selection through coordination of tenant move-in for large multi-phase projects, including numerous Class A build-to-suit developments and individual tenant build-outs. Well known for the creation of unparalleled lifestyle-focused developments, SJP is committed to meticulous design and engineering development plans that reflect a keen understanding of market demand.

Having sustained an unblemished track record of success, SJP has established relationships with many of the industry’s leading investors and financial institutions, providing unparalleled access to capital. For more information, call 212-335-2200 or visit www.sjpproperties.com.

About Deloitte

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 5,000 private and middle market companies. Our people work across the industry sectors that drive and shape today’s marketplace — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthy society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s more than 312,000 people worldwide make an impact that matters at www.deloitte.com

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

MORRISTOWN GREEN COVERAGE OF M STATION

 

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7 COMMENTS

  1. @ mtwngrl – ugh….if you make your agreement contingent on it being built, then you probably could sell it. Well done there. Another pointless argument.

    @ Charles – ah that’s right good point. We should never develop anything in any town because in 15 years something just may happen. Btw – did you ever answer what development you were for?

  2. I have a bridge for sale…its not built, and its not even approved, but perhaps they would like to sign up for it now?? Unbelievable. Greed should not override need when developing properties.

  3. This has been a done deal since it was introduced. In 15 years it will be an ugly blight like HQ and the toothless agreement the town has proposed will help ensure that.

    But hey, a small number of people are going to make a large amount of cash on the backs of the residents, and that’s what matters in what passes for local government these days. The bubble will pop again, all the cheerleaders will be silent.

    Time is a flat circle. 🙂

  4. The public must be given an opportunity to review & comment on the town’s redevelopment agreement with
    the M Station developer BEFORE it is executed.

    Also, the developer must disclose their investors in M Station and related entities, particularly Ch 14 regulated properties.

  5. Congrats on signing Deloite!

    BUT, for M Station project to proceed, the developer MUST EITHER a) divest itself from Chapter 14 regulated property; or b) agree in writing to comply with the municipal code – not the fake ordinance on town’s web site, but the actual ordinance.

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