Regeneron Expands Again At Landmark at Eastview

John Jordan | September 2015

A rendering of the new Regeneron Pharmaceuticals building at the Landmark at Eastview.

TARRYTOWN—The latest lease expansion by Regeneron Pharmaceuticals Inc. will bring its overall presence at The Landmark at Eastview campus here to more than 1.1 million square feet.

The rapidly growing biopharmaceutical firm signed a nine-year lease expansion for 116,200 square feet of space at the 1.4 million Landmark at Eastview office and R&D complex, which is owned by BioMed Realty Trust Inc. The company will expand into 78,000 square feet of space at 767 Old Saw Mill River Road and into approximately 38,200 square feet at 777 Old Saw Mill River Road.

That expansion does not include the space it will be occupying at the campus currently under construction. BioMed Realty Trust expects to complete work on the 785 and 795 Old Saw Mill River Road buildings that total a combined 297,000 square feet by sometime in the fourth quarter. Regeneron will occupy all of the space in both buildings. BioMed’s total investment to date on that project is approximately $160 million.

Transwestern partner Matthew McDevitt, who represented BioMed Realty in the transaction, said that Regeneron Pharmaceuticals decided recently it required more space in addition to the new building under construction. Peter Capuciati and Alex Blue of Savills Studley represented Regeneron Pharmaceuticals in the lease expansion transaction.

BioMed Realty Trust has the capability of adding another 130,000 square feet of new development on the property located in the Town of Greenburgh and an additional 400,000 square feet of space in the Town of Mount Pleasant, Transwestern’s McDevitt said. A spokesperson for BioMed Realty said that those development sites are in the San Diego-based REIT’s land bank, but noted that there are no immediate plans to develop those parcels as yet.

Other tenants at the eight-building Landmark at Eastview include Progencics Pharmaceuticals Inc., PsychoGenics and Momentive Performance Materials USA Inc. The complex is now more than 99% leased.

The expansion deal comes after Regeneron and Sanofi announced on July 24th that the U.S. Food and Drug Administration approved its cholesterol-lowering Praluent inhibitor drug. The companies on July 28th reported that they entered into a new global collaboration to discover, develop and commercialize new antibody cancer treatments in the emerging field of immuno-oncology. The deal calls for Sanofi to make an initial investment of up to $2.17 billion in the exclusive collaboration, including $640 million in upfront payments to Regeneron and a potential sales milestone of $375 million.

Regenon reportedly acquired a nearly 100-acre undeveloped parcel that adjoins the Landmark at Eastview property earlier this year after the Town of Greenburgh rezoned the property as an economic development district that would allow retail and research and development space. The Westchester County Business Journal reported that Regeneron acquired that property from an entity controlled by Argent Ventures for $73 million. Officials with Regeneron could not be reached for comment at press time.

John Jordan
Editor, Real Estate In-Depth