Davis Moore

Life Science

Project / Metabolon

Metabolon

Metabolon, a leading health technology company headquartered in Durham, NC, was finalizing a significant capital campaign to raise $50 million. These funds would expand the existing lab facilities and secure additional space for employees.

Metabolon New

01. The Issue

Metabolon occupied 43,000 square feet of office and laboratory space with two years remaining on its lease. The company had a below market rental rate, but significant capital was needed to build additional lab space and upgraded to the existing HVAC system. The adjacent 12,000 square foot suite was available for expansion, but that space also required extensive demolition, decommissioning and a new configuration. Metabolon needed a large tenant improvement allowance to achieve its needs, but also wanted to protect against a higher rental rate.

02. The Solution

Through realistic alternatives, along with an in depth understanding of the landlord’s position and intentions, Davis Moore renegotiated and restructured a favorable long term lease extension and expansion that provided Metabolon the necessary 55,000 square foot office and lab space for its growing business.

03. The Benefit

The restructure included a large tenant improvement allowance covering the costs for new labs, demolition and construction of the expansion space, and repair and replacement of aging HVAC units. In addition, the renewal terms were structured to give Metabolon a below market rental rate for the remaining eighteen months.