The transaction included the purchase of the existing ground lease from The Lionstone Group, owners of 1800 Stewart, as well the extension of the ground lease and the execution of a development agreement with the City of Santa Monica to expand the site’s total allowable square footage. The two buildings currently sitting on the site will be demolished.
Agensys was represented by Matthew Brainard, corporate managing director in the Los Angeles office of global tenant advisory firm Studley. Stacy Wilder, senior managing director of Studley’s Project Management Services for Los Angeles, was instrumental in executing the development agreement with the City and will oversee the construction of the new building.
“Clearly, Agensys has a significant presence in Santa Monica and is a highly sought after tenant. We proactively and creatively pursued all viable opportunities, including evaluating the entire Westside and South Bay markets, before recommitting to the City of Santa Monica,” said Studley’s Brainard. “Working in tandem with Agensys, the City, and a team of expert consultants, we were able to structure a transaction that provides the company with a specialized facility constructed specifically to meet its corporate needs as well as the opportunity to remain in Santa Monica.”
‘With the exemplary assistance of our team of consultants—
Studley also negotiated interim expansion space to accommodate Agensys’ growth prior to the project’s completion. “Over the course of the last twelve months, Studley negotiated and secured three additional facilities in Santa Monica totaling nearly 50,000 square feet. These interim facilities are an essential component in accommodating Agensys' growing operations while under construction at 1800 Stewart," noted Brainard. The company currently occupies approximately 100,000 square feet across multiple facilities in Santa Monica.
“It’s been a challenge to find adequate space in Santa Monica to accommodate this new facility which is essential for our continued growth. We were founded in Santa Monica 14 years ago and it is great to be able to stay here and build the special facilities we need for our cancer research and manufacturing of antibody products,” said Paul Kanan, Executive Vice President, Finance and Operations, of Agensys. The project is designed to accommodate the company’s growth from 185 employees to more than 300 by 2015.
The new building, designed by HLW, incorporates highly efficient, sustainable architecture and will be LEED certified. Features include a full commissary, open green area, manufacturing facility, laboratories, clean rooms, and corporate offices. Additionally, the development will include a pedestrian path, pocket park, sculpture garden, and café which will be open to the public. The project is adjacent to Bergamot Station which includes art galleries, restaurants, and a soon-to-open metro line, “providing a green and convenient transportation alternative for Agensys employees,” added Brainard.
Industry Partners represented The Lionstone Group in the transaction.
Robert Plotkowski acted on behalf of Advisors LLP, a transactional law and consulting firm, in providing legal services related to the ground lease purchase and extension. Dale Goldsmith of land use firm Ambruster Goldsmith & Delvac LLP led the negotiations related to the development agreement.
Jessica Foldes was also a member of the Studley brokerage team representing Agensys in the transaction.
About Agensys: Agensys, Inc., a biotechnology company, engages in the research and development of therapeutic human monoclonal antibodies and antibody drug conjugates for the treatment of cancer. It offers products to treat various tumors, as well as prostate, pancreatic, and bladder cancers. The company was founded in 1997 and is based in Santa Monica, California. As of December 18, 2007, Agensys, Inc. operates as a subsidiary of Astellas Pharma, Inc. The Astellas culture and brand is committed to building community, helping others, encouraging integrity and inspiring people to make a difference, today, tomorrow and every day. Astellas Pharma US, Inc., located in Deerfield, Illinois, is a U.S. affiliate of Tokyo-based Astellas Pharma Inc. Astellas is a pharmaceutical company dedicated to improving the health of people around the world through the provision of innovative and reliable pharmaceutical products. The organization is committed to becoming a global category leader in focused areas by combining outstanding R&D and marketing capabilities. In the U.S., Astellas markets products in the areas of Anti-Infectives, Cardiology, Dermatology, Neuroscience, Transplant, and Urology. For more information about Astellas Pharma US, Inc., please visit our website at www.astellas.us or follow us on Twitter (@AstellasUS)
About Studley. Studley is the only global tenant advisory firm with a pure tenant representation delivery platform. Founded in 1954, Studley pioneered this conflict-free business model. Today, with 19 offices nationwide and an international presence through its London office and AOS Studley throughout Europe, Studley provides strategic real estate consulting services to top-tier corporations, law firms, nonprofits, government agencies and institutions of higher education. Information about Studley is available at www.studley.com.