What life science tenants pay at 345 Park Avenue South

Deerfield Management bought the 12-story building for $345M in 2019, then spent $137M to convert it to lab space

New York /
Dec.December 10, 2021 07:00 AM
Deerfield's James Flynn and 345 Park Avenue South (Deerfield, Cure)

Deerfield’s James Flynn and 345 Park Avenue South (Deerfield, Cure)

The following is a preview of one of the hundreds of data sets that will be available on TRD Pro — the one-stop real estate terminal that provides all the data and market information you need.

One block east of Madison Square Park sits a 326,000-square-foot petri dish, where Deerfield Management, an equity investor in health care startups, is running a real estate experiment.

The hypothesis: whether a taxpayer-supported life sciences industry will fill 345 Park Avenue South with entrepreneurial tenants following a $137 million buildout of lab spaces in the building.

To finance its 2019 purchase of the 12-story building from Aby Rosen’s RFR Realty for $345 million, Deerfield used proceeds from CMBS loans and $112 million of equity, with a lift from LifeSci NYC — a de Blasio administration program that will invest $1 billion to help establish a life sciences industry in the city, which has long lagged behind hubs such as Boston, New Jersey, San Diego and the Bay Area.

Documents associated with the CMBS loan provide an inside look at the property’s finances.

The building was 46 percent occupied as of April, and Deerfield’s website shows 135,000 square feet available for rent between floors four and eight.

While Deerfield itself accounts for more than 80 percent of the occupied space, one of its tenants, Helaina, produces “nature-equivalent breast milk components” and another, ProTara Therapeutics, works on genetic therapies for cancer and rare diseases.

In August, Deerfield announced the opening of a $1.4 billion investment fund, having closed on $840 million in venture capital in 2020. Its business model relies on drawing health science innovation out of academic institutions and into the private sector.

Other life science buildings to trade pricey build outs for high rents include the Alexandria Center for Life Sciences complex at 430 East 29th Street, where tenants include global firms Bristol-Myers Squibb and Pfizer as well as newcomers Intra-Cellular Therapies and Petra Pharma Corporation; and Taconic and Silverstein’s Hudson Research Center at 619 West 54th Street.





    Related Articles

    arrow_forward_ios
     Winzone Realty's Ben Pan and Keller Williams' Marc King (Winzone Realty, KW)
    These are Queens’ top brokerages by agent headcount
    These are Queens’ top brokerages by agent headcount
    Douglas Elliman Executive Chairman Howard Lorber (Elliman)
    These are Long Island’s top brokerages by agent headcount
    These are Long Island’s top brokerages by agent headcount
    Quantum-Si CEO John Stark and 115 Munson Street in New Haven CT (Google Maps, Quantum-Si)
    Life sciences firm inks 65K sf lease at New Haven complex
    Life sciences firm inks 65K sf lease at New Haven complex
    These are Brooklyn’s top 10 brokerages by agent headcount
    These are Brooklyn’s top 10 brokerages by agent headcount
    These are Brooklyn’s top 10 brokerages by agent headcount
    Here’s the top firms for Manhattan in agent headcount
    These are Manhattan’s top brokerages by agent headcount
    These are Manhattan’s top brokerages by agent headcount
    Black Spruce picks up UWS apartments in slow week for mid-market deals
    Black Spruce picks up UWS apartments in slow week for mid-market deals
    Black Spruce picks up UWS apartments in slow week for mid-market deals
    Residential construction (iStock)
    Map: Here’s where NYC added the most residential units this year
    Map: Here’s where NYC added the most residential units this year
    Aby Rosen’s RFR Holding to drop $300M on Midtown office building
    Aby Rosen’s RFR Holding to drop $300M on Midtown office building
    Aby Rosen’s RFR Holding to drop $300M on Midtown office building
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...