Advance closes on deal to build NJ research campus.

Advance Realty Group, through its Forge Technology, LLC affiliate, has closed on a 50-year ground lease with InSitech, Inc., a partnership intermediary for the US Army's Picatinny Arsenal/Armament Research, Development, Engineering Center (ARDEC).

Plans are underway to break ground in the Spring of 2007 on a research campus in Morris County, New Jersey.

Named the Picatinny Applied Research Campus (PARC), Phase I is the development of 100,000 s/f of office/lab space within the boundaries of the base's high security enclosure. Future phases of PARC call for the development of over one million square feet on an additional 120 acres at the United States Army base.

Anticipated demand is expected from government contractors at Picatinny and from its main tenant, ADREC, as well as research universities, communications, electronics, nanotech and emerging technology companies worldwide. Tenants would have access to Picatinny's $1.5 billion of high technology equipment, over 64 laboratories, and intellectual assets, some of which only exist at Picatinny Arsenal.

"We believe that this is an exceptional opportunity to provide technology transfer among varied enterprises in a real estate environment specifically designed to meet the unique needs of high technology tenants," stated Gregory N. Senkevitch, COO of Advance Realty Group, a leading Northeast U.S. owner and developer of Class A office properties.

"We expect demand to come both from firms that already have a presence at Picatinny, as well as national and international companies and research organizations that want to take advantage of both the technology transfer opportunities and one-of-a-kind technology infrastructure that Picatinny offers."

The overall PARC development plan includes one- to three-story build-to-suit and multi-tenanted buildings with labs, office space and multi-purpose space for high tech, defense and academic tenants and users. The PARC design also includes landscaped open space and pedestrian and bicycle pathways.

PARC tenants will have access to the amenities of Picatinny Arsenal, which include food services, recreational fields and an 18-hole golf course. In addition, Advance's plans for PARC include videoconference capabilities, meeting rooms, an auditorium, and classrooms. These amenities will help spur formal and informal collaboration between employees and government workers, further enabling the exchange of information among various tenants and groups in concert with the concept of technology transfer envisioned by Advance and InSitech.

Timothy N. Teen, president and CEO of InSitech, said, "When completed, the PARC will be a state-of-the-art, high-tech campus like no other in the country, offering significant 'technology infrastructure amenities' in a collaborative manner that will foster innovation. As an outstanding example of a public/private partnership between Advance, InSitech and the United States Army, it will operate as a world-class enhancement to Picatinny's mission." Picatinny commander Major General Paul Izzo added, "This deal makes use of Picatinny Arsenal's non-excess land to augment our R&D mission through collaboration with the commercial sector.

"It also creates income for the base, as the arsenal could reap $500 million in services during the 50-year deal and revenue sharing agreement with InSitech and Advance."

"The military is always working to modernize itself, especially with bases looking to reduce operating and maintenance costs," said U.S. Rep. Rodney Frelinghuysen, a member of the House of Representatives appropriations committee. "This agreement may become a model for other bases."