Archon sells candy factory to Capital lease for $48m.

Archon Group, L.P. announced the sale of the 148,000 s/f Cadbury Schweppes Office and Technology Center on Route 10 in Hanover township, N.J. to Capital Lease Funding for $48 million. The state-of-the-art office and technology center is currently under construction. Capital Lease Funding is a public REIT focused on net lease properties.

In late 2004, Archon Group signed a lease with Cadbury Schweppes to occupy the entire facility, and immediately began construction of the center. Cadbury Schweppes intends to utilize this space to expand its innovation capabilities and develop new gum, mint and candy products. Cadbury Adams USA LLC's brand portfolio includes such widely recognized products as Bubbaloo, Bubblicious, Certs, Chiclets, Dentyne Fire, Dentyne Ice, Halls, Trident and Trident White. Completion of the facility is expected to be completed by late 2005.

Sam Morreale, regional director, Fred Arena, regional director, and John McNamara, director of disposition, led this transaction on behalf of Archon. Granite Partners was the broker.

"We are pleased to have consummated the sale of the Cadbury Schweppes facility to Capital Lease Funding," said Morreale.

"This sale transaction completes our value creation cycle for this asset. Our team was able to acquire this abandoned asset, redevelop it, secure a full building user and sell it at a record market price," Arena added.

Archon Group is targeting New Jersey for substantial new investment. The company is currently redeploying capital into new opportunities in several new sectors.