Case Studies


Transaction Details

Regeneron Pharmaceuticals

Landmark @ Eastview
Tarrytown, NY

Transaction Size
193,888 square feet

Transaction Type


Biopharmaceutical Company Saves Over $15 Million in 193,000 SF Build-to-Suit Lease  


Client Situation

Regeneron is a biopharmaceutical company that discovers, develops, and intends to commercialize therapeutic medicines for the treatment of serious medical conditions. Over the past 10 years, the firm had organically grown from a single office suite into seven separate non-contiguous spaces located throughout the Landmark complex in Tarrytown, NY.  Regeneron had been attempting, for several years, to create a plan that would allow it to build or relocate to a new state-of-the-art laboratory and headquarters facility; however, the tremendous capital outlay required had been a hurdle Regeneron historically could not overcome. 

Consideration Analysis

Studley (now Savills Studley) was faced with a significant challenge.  We had to structure a transaction that would be similar in annual expense to the existing renewal terms and that would require Regeneron to utilize virtually none of its own capital.  With preliminary tenant-improvement budgets approaching $250 psf, the possibility of a relocation or build-to-suit appeared remote.  However, by utilizing a combination of municipal incentives, extremely efficient infrastructure, financial structuring, financing from which only a public REIT could benefit, and some extreme value engineering, we were able to produce a build-to-suit transaction that accomplished and actually exceeded all of Regeneron’s goals.  In addition, we acquired favorable expansion rights for Regeneron that would allow the company to more than double in size on the same campus.


The final transaction resulted in Regeneron taking control of five of six floors in two new build-to-suit buildings with a 15-year lease.  The landlord provided Regeneron with $245 psf in capital funding at a lower cost of capital than Regeneron’s own.  Additionally, even though Regeneron’s credit is sub-investment grade, the firm was only required to provide three months rent as a security deposit.  Finally, we secured the location of the new development to be adjacent to one of Regeneron’s existing pods of space within the old development, and as a result, Regeneron will be able utilize the most valuable part of the old installation – the Vivarium.  This alone saved Regeneron $14 million in capital (the replacement cost) and was vital to keeping the overall economics in line with those of a renewal.


Meet the Team

Peter Capuciati
Executive Vice President, Director

Peter is renowned for his unique ability to bridge the world of corporate finance and commercial real estate to add value for his clients. He leverages his strategic and financial expertise to structure and create transactions that complement tenants’ financial and business drivers. His approach ensures that companies’ real estate decisions are made within the framework of their operational and financial objectives.

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