Abbott Labs-Leased R&D Fetches $53M

SANTA CLARA, CA-A 218,366-sf R&D/office building here that is net leased to Abbott Labs on a long-term basis has changed hands for $53 million, which equates to $242.70 per sf. The new ownership includes investment funds managed by Boston-based Eaton Vance Management, a wholly owned subsidiary of publicly held investment manager Eaton Vance Corp. The seller was a JV led by Emeryville, CA-based Harvest properties.

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.