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DANVERS, MA-California-based Applied Materials Inc. makes its first appearance in the Northeast by leasing the former Osram Sylvania manufacturing and office facility here. The company, which manufactures products for the semiconductor industry, has an option to purchase the 280,000-sf building.

The facility was once used to manufacture light bulbs before Gilbane Properties and College Street Investments acquired it last year. The new owners redeveloped the building and cleaned up the environmental issues that plagued the property.

According to Mark Reardon, senior director with Cushman & Wakefield’s brokerage services group, the company is relocating this manufacturing facility from England. “We zeroed in on Massachusetts as a place they wanted to be in,” Reardon, who represented Applied Materials in the transaction, tells GlobeSt.com. “A lot of their competitors are located in Danvers so it gives them access to people familiar with the industry and access to the local talent.”

While Reardon would not disclose the final lease rate, he says that the asking rate for the property was in the mid high teens per sf. But, he adds, “I fully expect them to purchase it. It makes sense with the investments they are putting into the building.” Applied Materials is putting $40 million of improvements into the building.

Rich Ruggiero and Marci Alvardo, associate directors with Cushman & Wakefield, represented Applied Materials, along with Reardon. David Wright and Amy Friedman of CB Richard Ellis Whittier Partners and Greg Klemmer of Klemmer Associates represented the owner of the building.

Reardon emphasizes that the state helped move the deal along by “rolling out the red carpet.” According to Reardon, this was not with tax incentives but with making the company feel very welcome. “They expedited the permitting process and helped them work through the approval process,” he says. “For some companies, it’s not the financial package as much as the feeling that you’re wanted.”

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