ALISO VIEJO, CA—Parker Properties will begin construction on a four-story, 205,000-square-foot build-to-suit project for MicroVention, a neurovascular company that will invest approximately $100 million in the project. The subsidiary of Terumo Corp. will relocate its world headquarters to the Summit Office Campus here once construction is completed.
Jeff Cannon, corporate managing director of Savills Studley, represented MicroVention, while a CBRE team led by Carol Trapani represented Parker Properties in the transaction. HFF acted as the capital-markets advisor representing Parker.
The new facility, which is set to begin construction this summer, will include an innovation/research-and-development center for MicroVention and Terumo. MicroVention will occupy the property and own the facility upon completion. Designed by Ware Malcomb Architects, the new building will house in excess of 800 employees; the 5.13-acre site also includes an 822-stall parking garage.
According to Richard Cappetta, president and CEO of MicroVention, “MicroVention Inc. has been an innovation center for Terumo, consistently developing new products. Aliso Viejo and the surrounding region is one of the leading medical-technology business clusters in the US and offers access to a large pool of 'med-tech' experts. This move will allow Terumo to be firmly poised for accelerating interventional business growth worldwide.”
MicroVentioin is a leader in the development of catheter-based minimally invasive neuroendovascular devices and technologies to treat cerebral aneurysms and other neurovascular diseases. The firm will consolidate facilities currently located in Orange County into the new building, which will house its worldwide headquarters, administrative functions, global sales, research-and-development center, manufacturing clean rooms and wet laboratories.
Parker began development of Summit Office Campus in 1996. Today, the campus encompasses 14 buildings, totaling approximately 1.7 million square feet of space, and is home to more than 100 tenants and 6,000 workers. The MicroVention build-to-suit will be the 15th building in the seventh and final phase of the campus.
MicroVention was originally founded in Aliso Viejo, and the new worldwide headquarters represents an important homecoming and significant expansion for the company. Cappetta says, “Due to the success of our medical devices and ongoing research and development, MicroVention has experienced a great deal of growth. This new state-of-the-art headquarters will meet our long-term operational and space needs.”
Cannon explains that a build-to-suit was determined to be the best solution for the company after evaluating both existing product and development opportunities relative to MicroVention's workforce considerations, business objectives and operational needs. “The process then became focused on finding the right partner, and Parker Properties and the Summit Office Campus met all of our defined criteria—functionally, culturally and financially.”
Bringing MicroVention to the campus represents a milestone for Parker as well. According to Russ Parker, co-managing partner for Parker, “The vision was always to create an environment that would attract world-class companies in an amenity-rich, master-planned community. Today we are home to major tenants such as QLogic, TechSpace, Lennar Homes, Pacfic Life Insurance Co., Marvell Semiconductor, Avanir Pharmaceuticals and Telogis, just to name a few. We are excited to welcome MicroVention to Summit, further adding to the growing medical-technology cluster in Aliso Viejo and Summit.”
This will be Parker's third major build-to-suit at Summit, having completed projects for Pacific Life and QLogic. As GlobeSt.com reported in February, Russ Parker was named as a member of the board of directors for NAIOP SoCal.
Regarding the build, Cannon tells GlobeSt.com, “This build-to-suit transaction does speak to the broader Orange County office market since there's not suitable existing product for large tenants (without significant repurposing), and rents haven't appreciated to the level to spur significant speculative development. As the economy and real estate values recovered with the office market tightening significantly, the cost gap between retrofitting and replacement has narrowed considerably, making a build-to-suit a very viable transaction solution with the added benefit of increased efficiencies, sustainability and control.”
Stay tuned for exclusive interviews with Parker and Cannon regarding the development and the Aliso Viejo real estate market.
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