Neurogen To Sell Real Estate For $3.5 Million
Three days after announcing it would sell its 160,000-square-foot properties for $3.5 million, Neurogen chief executive Stephen Davis on Monday identified the buyer as Investors Capital Partners, a Fairfield-based commercial real estate developer.
This deal should close in the first quarter next year, he said.
Investors Capital Partners plans to lease the space for scientific research, according to Richard Lee of O,R&L Partners, the broker.
"It's definitely most lucrative to the buyer to reclaim the space as lab space," Lee said. "The buildings were very expensive to fit out for bio and chem labs."
Investors Capital will inherit at least one tenant. In January, FORMA Therapeutics, a Cambridge-based biotech firm, leased 22,000 square feet from Neurogen for three years.
Investors Capital will acquire all four of Neurogen's buildings, including 120,000 square feet of laboratory and office space, and 40,000 square feet of warehouse space. The properties are on Northeast Industrial Road, just off Exit 56 on I-95.
In August, Neurogen announced that it had agreed to merge with Ligand Pharmaceuticals Inc. for $11 million in stock and would shut down the tiny remainder of its once-robust Connecticut operations. Neurogen retained the right to sell its real estate separately. The proceeds will be distributed to existing Neurogen shareholders.
Founded in 1987, Neurogen at first sought to develop drugs for major pharmaceutical companies in exchange for royalties. Eventually, it began developing its own drugs, but never brought any to market. Still dependent on investment, Neurogen ran into serious trouble last year. It now has six employees, none of whom will continue with Ligand, Davis said, including himself.
Ligand is a publicly traded firm working on treatments for various diseases, including muscle wasting, asthma and psoriasis.
Neurogen shareholders still must approve the Ligand deal.
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