Owned by Alexandria Real Estate Equities, the building is known by its street address, 455 Mission Bay. Nektar says in an SEC filing that it will pay no rent for the first four years of its 9.5-year sublease commitment for upper west-wing floors the building. After that, it says the starting rent will be approximately $35 per square foot, triple net, which is well below the going biotech rate of $48 per square foot. The rent will top out at $41 per square foot per month.

Pfizer inked a 15-year pre-lease for the building in mid-2008 [http://www.globest.com/news/1213_1215/sanfrancisco/172866-1.html] but changed its mind in mid-2009 [http:///news/1446_1446/sanfrancisco/179676-1.html], shortly after acquiring Madison, NJ-based Wyeth Pharmaceuticals, a purchase that included a global real estate portfolio. Pfizer instead is keeping its R&D operation in South San Francisco at 259 East Grand Ave., the home of Rinat Neuroscience, a company it acquired in 2006.

As it was to do for Pfizer, Alexandria will fork over $15 million for tenant improvements. Nektar will spend an additional $15 million completing the build out, which will include administrative office space as well as an R&D center with biology, chemistry, pharmacology and clinical development capabilities.