BioMed Realty Sells Rockville Property to GI Partners for $322.5M
- Dec 18, 2014
In one of the largest commercial real estate transactions of the year in the Washington, D.C., area, BioMed Realty Trust Inc. sold its biological manufacturing facility at 9911 Belward Campus Drive in Rockville for $322.5 million, or $1,112 per square foot, to San Francisco-based GI Partners.
The 289,900-square-foot facility was constructed in 2005 on a 9.6-acre site. BioMed Realty purchased the property in May 2006 as part of a sale-leaseback transaction with HGSI. The deal also included a 635,000-square-foot property on Shady Grove Road and an adjoining land parcel with the potential to be developed into almost 500,000 rentable square feet. BioMed will retain ownership of the two assets.
In a news release, BioMed said the sale resulted in a net gain of $136 million. It added that 9911 Belward Campus Drive is fully leased until June 2026 to Human Genome Sciences Inc., a wholly owned subsidiary of the GlaxoSmithKline global healthcare company.
“The sale of the manufacturing facility represents yet another example of our proven ability to create value at the asset level,” Alan Gold, BioMed Realty’s chairman & CEO, said in a statement for the press. “We are proud of the significant value creation this investment has generated for our stockholders, and we believe that the resulting special dividend provides a small portion of the tangible benefit our team is delivering for our investors. Over time, we expect to reinvest these proceeds into higher-growth investment opportunities, like our recent development projects in Cambridge, Seattle and elsewhere.”
GI Partners purchased 9911 Belward Campus Drive through TechCore LLC, a $1 billion discretionary core real estate fund it established in 2012 together with the California Public Employees’ Retirement System. TechCore was formed to buy technology-advantaged properties, such as data centers and corporate campuses. To date, it has acquired more than 2.7 million square feet of data center, life science and office properties throughout the United States.
“We are very pleased to own 9911 Belward, an institutional-quality property with state-of-the-art life science improvements,” added Mike Armstrong, vice president of GI Partners. “The facility’s location in one of the nation’s largest biotechnology clusters, coupled with its robust infrastructure, makes it an attractive property for life science and biotechnology use.”
Photo credit: biomedrealty.com