If the deal comes to fruition, Wake Forest plans to sign a lease with Targacept, a recent R.J. Reynolds Tobacco Co. spinoff, a move that could spark the biggest company recruitment effort to date at the young research park, according to the article.

Targacept, viewed as one of the most promising startups in the Triad, would be starting up with about 50 employees and millions in venture capital. The company is seen as an important tenant if the research park is to build credibility.

The president of Wake Forest, Thomas Hearn, has declined to comment on the deal except to say that the university and the board that supervises the park are full partners committed to the success of the park, the article says.

One Technology Place, built on the outskirts of Downtown Winston-Salem, opened in the spring of 2000. The 88,000-sf building, which was constructed for a reported $7 million, has Silas Technologies as its main tenant.

According to the article, Targacept officials at first were reluctant to rent space in the building because of the $60 per sf asking price. The price included extensive build-to-suit lab space that is essential to Targacept. But sources close to the deal say in article that Wake Forest is willing to absorb the difference between the lease asking price and what Targacept says it can afford.

Earlier in the year, executives at Samet Corp. had quoted lease rates on lab space from $40 per sf to $140 per sf, depending on the tenant's needs.According to the N.C. Biotech Center in the Triangle, lab space rents range from $20 to $50 per sf.

Targacept develops drugs that capitalize on nicotine's therapeutic effects without the side effects of smoking. The products created from the research are aimed at treating Alzheimer's, Parkinson's and other diseases. Don deBethizy, a former Reynolds researcher, is heading up the research team. He has not commented on the negotiations, but stated previously that he was interested in becoming a tenant in the park, according to the article.

The research park has been important to Wake Forest from the beginning. By being involved at the park, the university could validate its research programs and receive royalties from successful spinoffs. Also, successful programs can enhance a research institution's reputation.

Wake Forest is an investor in Longleaf Venture Fund, which is sponsoring three Downtown technology companies. Longleaf managing director Matt Crawford says that failing to install an industry leader like Targacept in the research park would be a real setback for Downtown's emerging biotechnology community.

Instant Insights /

University in Talks with Developer and Tenant

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