Bayer Corporation had just purchased the diagnostics group from Chiron. They required a 150,000 square foot campus facility in the East Bay that would stabilize Bayer Diagnostic’s R&D functions. At this time, there was a scarcity of both existing space and development sites and there was competition from other large campus users. Bayer was facing complicated existing lease structures/expirations as well as expensive laboratory improvements.
Equistone Partners was part of the team that extended leases at “below-market” rates including a 32,000 square foot expansion/renewal allowing Bayer the ability to delay lease commitments in an over-inflated market period.