152,000-SF Medical Facility Goes To Harvest
CONCORD, CA-Harvest Properties has purchased a 152,000-square-foot office, R&D and industrial facility here from Siemens with the intention to overhaul and expand the property for new tenant Fresenius Medical Care North America, a major provider of dialysis products and services. While terms of the deal were undisclosed, and GlobeSt.com was unable to reach Harvest before deadline to discuss the sale price, industry sources unrelated to the transaction report that the list price was $17 million and that Bank of America had lent $22.2 million to Harvest for the purchase.
Owned and occupied by Siemens Medical Solutions since its initial construction in 1989, the building was purchased by Harvest on August 15. Situated on 12.55 acres and located directly off Highway 4 at 4040 Nelson Ave. in north Concord, the property is currently composted of a two-story R&D/manufacturing building with top-floor office space, and a concrete structure.
Siemens will lease back the facility through 2012, when Harvest will begin the two-phase redevelopment, completely renovating the building, which will total 13l7,168 square feet upon completion (Phase I), and demolishing the existing concrete bunker and constructing a new high-cube warehouse with 12 loading docks, totaling 45,981 square feet (Phase II). Harvest will also handle property-management duties.
Fresenius, which is headquartered in Waltham, MA, currently operates manufacturing and production facilities in Walnut Creek and Pittsburg, CA, and employees in these facilities will relocate to the Concord building following the two phases of large-scale redevelopment. The new site will serve in the same capacity.
“We are excited and pleased to have Fresenius Medical Care North America relocate to Concord,” said John Montagh, economic development manager for the City of Concord, in a prepared statement. “The City worked closely with Harvest Properties to provide the needed entitlements to attract Fresenius to Concord Fresenius will bolster the City’s growing medical/life science sector joining other companies such as Cerus Corp., Elite Biomedical, John Muir Core Labs and Microbiology & Quality Associates, who recently relocated to Concord from Berkeley.
According to Harvest Properties’ founder and managing partner John Winther, “Landing a highly credible tenant such as Fresenius prior to closing on the building sale and structuring a long-term, attractive lease creates tremendous value and reduces risk for Harvest, its investment partners, the City of Concord, as well as Fresenius. It’s a win for all involved.”
The investment broker team included Breck Lutz and Jack Lewis of Cornish & Carey, while the leasing brokers were Andy Majewski and Carter Corbitt of CBRE.
As GlobeSt.com reported last week, Harvest will oversee management of Treat Towers, a class-A, LEED-EB Gold-certified office complex in Walnut Creek, which MetLife recently acquired from an Equity Office Properties joint venture. Lutz and Knute Bucklew will assume leasing responsibilities for the project.
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