The 82,000-sf office/lab building is 100% leased to a number of life science tenants, led by Compound Therapeutics, which leases about a third of the building. The purchase gives Alexandria 16 assets in the state.

"It's well located and offers a less expensive alternative to Cambridge and Boston (lab space)," says Roy Hirshland, president and CEO of T3 Realty, who has shown the building to prospective tenants. "Waltham is known to have a pretty friendly attitude toward life science companies," he tells GlobeSt.com.

Built in 1986, the three-story office building was purchased by Paul Townsend of the Sandcastle Group for $3.8 million in a foreclosure sale from South Shore Bank in 1992. Genome Therapeutics fully leased and retrofit the top two floors into lab space in 1999, then merged with Genesoft Pharmaceuticals and changed its name to Oscient in early 2004. After receiving FDA approval for one their products, they no longer needed lab space in the area, and moved their office operations to Bay Colony Corporate Center.

The lease will roll in November of 2006, according to sources, and Spaulding & Slye Colliers will resume the direct leasing responsibilities. LJ Melody & Company arranged $7.4 million in interest only, non-recourse financing for the purchase and renovations. Alexandria's portfolio currently comprises approximately 7.7 million sf of office/laboratory space.

"You've got a reputable lab investor/owner taking over this property," Jonathan Varholak, partner at Richards Barry Joyce and Partners, whose firm represented Oscient, tells GlobeSt.com. "Over the last few years, the building has turned itself into a life science incubator. It's a good starter space for someone (looking to expand)."