Since then, SurModics made $4 million in capital improvements to it and last year completed a $12.5-million addition. As a result, SurModics carries the property on its books for more than $20 million, according to company officials.

When SurModics bought the facility in October 2001, the Eden Prairie-based firm that makes coatings for the drug and medical device industry said the Bloomington facility could some day become its headquarters campus. But in April, the company decided to move away from contract manufacturing, which is capital intensive and low margin, Ankeny explains. Instead, SurModics, which developed the coating technology for Johnson & Johnson's drug-coated stent, will concentrate its resources on its highly profitable technology development.

Once it writes down that book value, SurModics will be able to stop taking $1.1 million in depreciation write-offs each year, Ankeny adds. Although there are several interested buyers or users of the facility, the company expects it will take at least a year to sell or lease it.