Located on 14.51 acres at 3625 Peterson Way, the building was constructed in 1979 and extensively renovated in 2006, including seismic retrofit, according to Eaton Vance Management. Abbott Labs signed a seven-year deal for the building in September 2006 that commenced in early 2007, according to published reports. The lease from then-owner Divco West was valued at approximately $17 million.
Divco West sold 3625 Peterson Way to the Harvest Properties JV in December 2006 for approximately $43 million, according to industry sources. The asset was part of a six-property acquisition. Harvest reportedly began looking to re-trade the building after Abbott Labs exercised a fixed-lease extension option. Harvest president Joss Hanna did not immediately respond to a request for comment.
Eaton Vance Management acquisitions director K.C. Swartzel tells GlobeSt.com (through a third party) that the building is net leased for the next 13 years. Swartzel declined to confirm the name of the tenant as Abbott Labs. Swartzel says the asset was attractive due to its "infill location, long term high-quality tenant and below market rent."
The 22 million-sf Santa Clara R&D market had a direct vacancy rate of 11.9% in the first quarter of 2008 and an average asking rate of $1.55, according to CB Richard Ellis. Net absorption for the quarter was 251,800 sf.
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