Located on 14.51 acres at 3625 Peterson Way, the building wasconstructed in 1979 and extensively renovated in 2006, includingseismic retrofit, according to Eaton Vance Management. Abbott Labssigned a seven-year deal for the building in September 2006 thatcommenced in early 2007, according to published reports. The leasefrom then-owner Divco West was valued at approximately $17million.


Divco West sold 3625 Peterson Way to the Harvest Properties JVin December 2006 for approximately $43 million, according toindustry sources. The asset was part of a six-property acquisition.Harvest reportedly began looking to re-trade the building afterAbbott Labs exercised a fixed-lease extension option. Harvestpresident Joss Hanna did not immediately respond to a request forcomment.


Eaton Vance Management acquisitions director K.C. Swartzel tellsGlobeSt.com (through a third party) that the building is net leasedfor the next 13 years. Swartzel declined to confirm the name of thetenant as Abbott Labs. Swartzel says the asset was attractive dueto its "infill location, long term high-quality tenant and belowmarket rent."


The 22 million-sf Santa Clara R&D market had a directvacancy rate of 11.9% in the first quarter of 2008 and an averageasking rate of $1.55, according to CB Richard Ellis. Net absorptionfor the quarter was 251,800 sf.

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