LabCorp Inks $22M Lease

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SAN DIEGO-Lab space locally continues its uptick with strong leasing activity. Most recently, Burlington, NC-based LabCorp has agreed to take R&D space at Sabre Springs Business Park.In the deal, LabCorp inked a lease for 109,780 sf. The 10-year deal counts $21.9 million. LabCorp will move into the new space in January 2007, after the landlord, LBA Realty Fund-Holding Co. completes lab and office improvements.LabCorp, which is an S&P 500 company, is at the forefront in diagnostic technologies and genomic testing. Last month, the firm signed an exclusive deal with Yale University to commercialize a test for epithelial ovarian cancer.According to company reports, LabCorp picked up $3.3 billion of annual revenues in 2005 and has more than 24,000 employees nationwide. The Fortune 500 firm is the country’s second largest lab company.Brent Jacobs, Greg Bisconti and Brian Cooper of Burnham Real Estate’s Life Sciences Group represented LabCorp in the transaction. Brent Wright and Jerry Keeney of CBRE represented the landlord.Burnham’s Life Sciences Group has seen a flurry of activity take place recently in the laboratory sector. The group, which specializes in the life sciences industry, brokers approximately 65% of the local biotech deals.Last month, the firm brokered a major investment deal in the area. Veralliance Properties, a San Diego-based real estate firm, expanded its real estate holdings with the purchase of an office and lab portfolio. Veralliance acquired the properties from EOP-Industrial Portfolio LLC for $30.5 million.In the deal, Veralliance made its purchases through HCP VPI Sorrento II LLC, a venture that is co-owned by Veralliance Properties and Health Care Property Investors Inc. The JV acquired Pacific Corporate Park, a 105,000-sf, two-building campus located at 6175 and 6195 Lusk Blvd. in San Diego, for $20 million.It also purchased Westridge I, a 53,326-sf, two-building project located at 6455 and 6465 Nancy Ridge Dr., for $10.5 million. With these acquisitions, Veralliance now owns and manages over 750,000 sf of office, R&D and biotech space throughout San Diego County. Lynn LaChapelle and Bob Prendergast of Burnham Real Estate Oncor International, along with Mark Wayne and Tom van Betten of the Burnham Life Sciences Group, represented both Veralliance Properties and EOP-Industrial Portfolio LLC in the portfolio sale.