"It's a record-setting price for that area," Grubb & Ellis'sJack T. Kerrigan, who represented Cubist as a broker, tellsGlobest.com. "It is one of the most desirable suburban towns foroffice space." The building is close to Routes 128 and 2 and iscurrently occupied by WR Grace, which is relocating toCambridge.

"We have considered moving out to 128 for a while," JenniferLaVin, senior director of corporate communications for Cubist tellsGlobest.com. "Its cheaper now to move and buy a building than tocontinue leasing here." Cubist occupies three buildings inCambridge. LaVin would not disclose the company's lease rates butasking prices there recently have been as high as $60 per sf.

Cubist was going to negotiate a 15-year lease at $3 million peryear but realized it was cheaper to buy the building from itsowner, Spaulding Slye Colliers, which represented themselves. Tofinance the purchase, Cubist is issuing $39 million in convertiblenotes to John Hancock Life Insurance Co. This financing covers thebuilding purchase price and $5 million for leaseholdimprovements.