Located at 1522 217th Place SE, the building is less than one-half mile from Sonus' existing headquarters at 22026 20th Ave. SE. Local sources tell GlobeSt.com that BioMed went out and acquired its building with Sonus in tow. A BioMed executive could not be reached Thursday afternoon for comment.
Sonus negotiated rental rate was not disclosed by the parties involved, but other sources tell GlobeSt.com the rate likely is in the low $30s per sf per year. Based on BioMed's total expected investment in the asset--about $20.5 million--a fully leased building at $32 per sf would loosely translate to a 10% capitalization rate. The space Sonus is not taking in the BioMed building, about 25,000 sf, remains available for lease.
Sonus was represented in its negotiations by Eric Blohm and Parker Ferguson of Flinn Ferguson, a Seattle-based brokerage that represents corporate tenants in commercial lease transactions. Blohm tells GlobeSt.com that there is very little laboratory space available in the region, and what is available isn't up to current standards. "Any enterprise grade life science user looking to upgrade their space and future-proof themselves will be faced with starting from scratch," he says. "As of today, there's no existing state-of-the-art lab space out there."
The situation could soon change if ICOS, which developed the erectile dysfunction drug Cialis in partnership with Eli Lilly, is acquired by Eli Lilly in the coming months as expected. ICOS leases and owns 325,000 sf of space in eight buildings in Bothell, where it is headquartered. It also owns about 7.5 acres of undeveloped land adjacent to its headquarters. If the company were to be acquired, published reports say all of its employees in the region would lose their jobs and, presumably, the space they occupy would come back to market.
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