Updated: PPD Renews Office Lease for 225,000 SF

Jun 16, 2014
CoStar

Pharmaceutical Product Development (PPD) signed a lease renewal for 224,979 square feet at MetCenter 10 in Austin, Texas



With the lease renewal, owners of the 345,600-square-foot two-story building were able to refinance the property paying off a $24.4 million loan balance that was scheduled to mature in January. The loan was pooled in a CMBS trust (Banc of America Commercial Mortgage 2005-3)



PPD’s previous lease was set to expire next March. Terms of the new lease were not disclosed



National Asset Services successfully represented the 29 co-owner tenants in common in the negotiations that resulted in a multiyear lease renewal for the space, which comprises about 65% of the total MetCenter 10 building area



"This lease renewal ensures stable long term cash flow that allowed the ownership to extinguish 100% of the existing debt by securing a new loan with more competitive terms while avoiding a maturity default of the existing loan," said Shirlee J. Kingsley, CPM, vice president of National Asset Services, who lead the negotiations



The company, which will use the medical office space as a 300-bed drug trial facility, is a leading global contract research organization providing drug discovery, development, lifecycle management and laboratory services and products for pharmaceutical, biotechnology and medical device companies.



Wilmington, NC-based PPD was recently selected as one of the most innovative organizations using information technology to create business value by CIO magazine's 27th annual CIO 100 Awards



The leased space is part of a the 550 acre mixed use MetCenter Business Park campus, on State Highway 71 just west of Austin-Bergstrom International Airport



The MetCenter 10 building features state-of-the-art communications technology, back-up generation, access to the Business Park's two on-site 400 Mega Watt electric sub-stations, fiber optics, five national hotels and hike and bike trails. The building also features dock level loading, a 13.5-foot clear height and 40-foot by 45-foot column spacing







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