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BioMed Gains Tenant for Vacant Building

BOTHELL, WA-The lab and office space REIT finalizes a 10-year lease agreement for two thirds of a 65,000-sf building here that it acquired vacant in November for $10.5 million.

By Brian K. Miller | Updated on January 21, 2007

BOTHELL, WA-BioMed Realty Trust has found a tenant for two thirds of a 65,000-sf building here that it acquired vacant in November for $10.5 million. The San Diego-based REIT has inked a 10-year lease with Sonus Pharmaceuticals. The cancer drug development company is expected to occupy the building in the third quarter. Meantime, BioMed will invest an additional $10 million upgrading the property for lab and office uses.

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.

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