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REDMOND, WA-Microsoft, already the owner of a major campus in Redmond, has paid $74 million to Spacelabs Medical Inc. for its 14-acre headquarters here. According to a real estate purchase agreement, dated Sept. 12 and filed by the parties with the Securities Exchange Commission, Microsoft’s acquisition was made by a holding company, USREA Inc., a Delaware corporation.

The property sold, located at 15120 and 15220 NE 40th St., contains a 180,270-sf office building and 268,000-sf medical, manufacturing facility. Spacelabs develops, and manufactures patient monitoring, anesthesia delivery, diagnostic cardiology and clinical information systems.

Karyn Beckley, vice president of Spacelabs’ corporate administrative services, tells GlobeSt.com that it will lease back its headquarters from Microsoft-at least for a while. “We have an 18-month lease, and we’re planning to relocate,” says Beckley. “We’re in the very early stages of looking for property. We’re looking for something that will be convenient for our employees and that will meet the company’s needs. It is our intent to stay in the area.”

Spacelabs (Nasdq: SLMD), a provider of health-care systems and manufacturer of medical devices, plans to use sale proceeds to retire its primary credit facility. The company, which according to an SEC filing sustained a $4.7 million net loss in 2000, believes the move will create corporate flexibility and add value for its shareholders.

For the 26 weeks ended June 30, the company’s revenues increased 1% to $120.5 million, and its net loss fell 64% to $2.2 million. Revenues reflect a growth in Europe and Canada. According to one market analyst, the “Lower loss reflects benefits from continued efforts to reduce fixed costs and selling expense.”

As for Microsoft’s plans after Spacelabs relocates, a spokesperson for the software giant says, “We don’t have comment on it at this time.”

Both structures were built by Spacelabs. “We purchased the properties and built both of the buildings,” says Beckley. According to a source at First American Title, Spacelabs spent slightly over $7.3 million for approximately four acres at 15210 in 1990. The remaining property was acquired in 1991 for just under $21.9 million.

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