The acquisition of a massive former Merck campus in New Jersey, one of the largest life sciences real estate transactions in state history, sets up the 108-acre campus for redevelopment into a new biotech and life sciences hub.

Onyx Equities and Machine Investment Group acquired Merck’s 108-acre Kenilworth campus, which includes nearly 2M SF of biologics, labs, and research and development buildings. The pharma giant moved its headquarters to Rahway, New Jersey, in 2022 and will fully depart the existing campus by 2026.

Onyx Equities co-founder and Managing Partner John Saraceno told ROI-NJ that Onyx will begin renovating properties as Merck begins its exit.

“The life sciences industry is surging, and its rapidly developing technology requires new specialty facilities,” Saraceno said. “The Merck campus represents an opportunity to host blue-chip companies that will benefit from proximity to New Jersey and New York’s highly educated workforce.”

Details of the transactions weren’t disclosed.

In addition to life sciences space, the site also contains 500K SF of Class-A office, 30 developable acres, a 25-megawatt cogeneration plant and more than 3,200 parking spaces.

The growth of the New York metro’s life sciences sector has been held back by a lack of coordination between the city and surrounding municipalities, analysts told Bisnow. Sites such as the Merck campus across state lines in New Jersey stand out as places that can serve as opportunities for new lab development.