Intercontinental Agrees to Buy Waltham Research Facility for $51M

WALTHAM, MA-Boston based Intercontinental Real Estate Corp. has inked a deal to acquire Praecis Pharmaceuticals' 180,000-sf corporate headquarters and research facility here for $51.3 million. The sale-leaseback arrangement will give Praecis 65,000 sf of laboratory and office space within the facility.

The transaction, expected to close later this month, will net the seller approximately $50.6 million, $31.6 million of which will be used to retire the property's existing mortgage. The remaining $19 million will go toward furthering Praecis' research and development goals, the company says.

"It certainly is the highest price per sf in the suburban marketplace," Richard Hurlihy, head of the investment division for Richard Barry Joyce & Partners, tells GlobeSt.com. He says at least 12 prospective investors bid on the property. "It's certainly considered the premier available property in the Waltham marketplace."

Praecis' president and chief executive officer Kevin F. McLaughlin, says in a statement that the sale of the 830 Winter St. property will significantly increase the company's cash and investment balance, which stood at $48 million on Sept. 30. "The facility sale will enhance our flexibility as we continue to focus our resources on our most promising assets and technologies," McLaughlin says.

The biopharmaceutical company purchased the three-story unfinished Waltham property, located on the Cambridge Reservoir, from Bren Schreiber Properties for $41.5 million in 2000. At the time of that sale, the $237 per-sf price on the property was considered the one of the highest per-sf prices paid for a building in Boston's suburban markets.

Praecis was represented in the recent sale by Bob Richard, president of Richard Barry Joyce & Partners, and Jon Varholak , a partner in the firm. Richard and Varholak also procured the buyer. Neither Praecis nor Intercontinental returned calls from GlobeSt.com seeking comment.