According to the article, Targacept officials at first were reluctant to rent space in the building because of the $60 per sf asking price. The price included extensive build-to-suit lab space that is essential to Targacept. But sources close to the deal say in article that Wake Forest is willing to absorb the difference between the lease asking price and what Targacept says it can afford.

Earlier in the year, executives at Samet Corp. had quoted lease rates on lab space from $40 per sf to $140 per sf, depending on the tenant's needs.According to the N.C. Biotech Center in the Triangle, lab space rents range from $20 to $50 per sf.

Targacept develops drugs that capitalize on nicotine's therapeutic effects without the side effects of smoking. The products created from the research are aimed at treating Alzheimer's, Parkinson's and other diseases. Don deBethizy, a former Reynolds researcher, is heading up the research team. He has not commented on the negotiations, but stated previously that he was interested in becoming a tenant in the park, according to the article.

The research park has been important to Wake Forest from the beginning. By being involved at the park, the university could validate its research programs and receive royalties from successful spinoffs. Also, successful programs can enhance a research institution's reputation.

Wake Forest is an investor in Longleaf Venture Fund, which is sponsoring three Downtown technology companies. Longleaf managing director Matt Crawford says that failing to install an industry leader like Targacept in the research park would be a real setback for Downtown's emerging biotechnology community.