Otonomy Inks Build-to-Suit With Alexandria
Now hear this! A maker of medicine for your ear is expected to develop a new HQ building at University Towne Center. Otonomy revealed its plans this week in its quarterly filing with the SEC, where it states the firm has contracted to develop a 62k SF office building at 4796 Executive Dr to “accommodate growth of the Otonomy team to support commercialization efforts and development of an expanding product pipeline,” officials state. Alexandria Real Estate Equities' Dan Ryan confirmed his company has been tapped to develop the “very cool, state-of-the-art” three-story biotech facility.
The deal means Otonomy will be moving its HQ from its facility at 6275 Nancy Ridge Dr by October of next year. According to docs, Otonomy inked a deal for a little more than 10 years, with options to extend the lease for five more years (it also has a kick-out clause with a termination fee after 7.8 years). Otonomy will be paying $232/month, with 3% annual increases in rent, for a total of $32.7M in lease payments on the life of the loan (excluding rent abatement for the first 10 months of the lease term). Otonomy also placed a letter of credit deposit with Alexandria for $695k, according to docs.
