Regeneron Inks 194,000-SF Lease in Westchester

GREENBURGH, NY-BioMed Realty Trust of San Diego, the owner of the Landmark at Eastview complex here, will build a new corporate headquarters and research and development building for Regeneron Pharmaceuticals Inc. Regeneron, which currently occupies space at 777 Old Saw Mill River Rd. and other buildings at the 751,648-sf complex, signed a lease for approximately 194,000 sf for the new HQ.

Company officials say the project will take about two years to complete. The new buildings will incorporate energy efficient technologies along with an open and flexible design. Regeneron currently employs about 440 workers at the complex.

The firm will consolidate operations from multiple buildings at the complex to its new facilities, although it will retain its 27,000-sf specialized VelociGene research facility at the property.

"This new, custom-designed facility supports our efforts to position Regeneron for the future. We have in place an ambitious business strategy built around our existing product candidates, robust scientific research programs, and an antibody technology platform that we intend to use to expand our clinical pipeline," says Leonard Schleifer, president and CEO of Regeneron.

The firm's intent to embark on a build-to-suit venture with BioMed Realty came to light in October when Regeneron and the owner of the Landmark at Eastview went before the Westchester County Industrial Development Agency for incentives.

The Westchester County IDA later approved an inducement resolution in connection with the project, which according to papers filed with the IDA is estimated at $78 million. The agency agreed to provide sales tax exemptions to Regeneron and BioMed worth about $1.4 million each.

Those knowledgeable about the new development plan at Landmark at Eastview, say that BioMed Realty Trust could build a third building at the property, bringing the total project to more than 300,000 sf at a cost of more than $100 million.

Regeneron states in its filings with the IDA that it had conducted a search covering New York, New Jersey and Connecticut that encompassed 37 sites. The company seriously considered sites located in Mahwah, NJ and Edgewater, NJ, as well as a site in Ardsley, NY, before deciding to remain at the Landmark at Eastview.

Regeneron, which was founded in 1988 in Manhattan and relocated to the Landmark at Eastview two years later, is also eligible for a $4-million capital grant from New York State's Empire State Development Corp.