Harvest Properties Acquires Concord Medical Facility; Redevelopment Planned for New Tenant Fresenius Medical Care North America

EMERYVILLE, Calif.--(BUSINESS WIRE)--Full service commercial real estate firm Harvest Properties today announced that it has purchased a 152,000 square foot office, R&D and industrial facility in Concord from Siemens, and intends to overhaul and expand the property for new tenant Fresenius Medical Care North America (NYSE: FMS), the largest provider of dialysis products and services in the U.S.

“Landing a highly credible tenant such as Fresenius prior to closing on the building sale and structuring a long term, attractive lease creates tremendous value and reduces risk for Harvest, its investment partners, the City of Concord, as well as Fresenius”

Fresenius currently operates manufacturing and production facilities in Walnut Creek and Pittsburg, whose employees will relocate to the new Concord location following two phases of large scale redevelopment of the property. The new Concord site will serve in the same capacity. Fresenius is headquartered in Waltham, Mass.

Owned and occupied by Siemens Medical Solutions since initial construction in 1989, the building was purchased by Harvest Properties on Aug. 15. Sited on 12.55 acres and located directly off of Highway 4 at 4040 Nelson Ave. in north Concord, the property is currently comprised of 152,000 square feet, including a two-story R&D/manufacturing building with top floor office space and a concrete structure.

Siemens will lease back the facility through 2012; Harvest will then begin the two phase redevelopment, completely renovating the office/R&D building, which will total 137,168 square feet upon completion (Phase I), and demolishing the existing concrete bunker and constructing a new high-cube warehouse with 12 loading docks, totaling 45,981 square feet (Phase II). Harvest will also handle property management duties.

“We are excited and pleased to have Fresenius Medical Care North America, a world leader in dialysis products and services, relocate to Concord. The City worked closely with Harvest Properties to provide the needed entitlements to attract Fresenius to Concord. Fresenius will bolster the City’s growing medical/life science sector joining other companies such as Cerus Corporation, Elite Biomedical, John Muir Core Labs and Microbiology & Quality Associates, who recently relocated to Concord from Berkeley,” stated John Montagh, Economic Development Manager for the City of Concord.

“Landing a highly credible tenant such as Fresenius prior to closing on the building sale and structuring a long term, attractive lease creates tremendous value and reduces risk for Harvest, its investment partners, the City of Concord, as well as Fresenius,” said John Winther, Harvest Properties’ founder and managing partner. “It’s a win for all involved.”

The investment broker team included Breck Lutz and Jack Lewis of Cornish & Carey. The leasing brokers on the deal were Andy Majewski and Carter Corbitt of CBRE. Terms of the deal were undisclosed.

About Fresenius Medical Care North America

Fresenius Medical Care (NYSE: FMS) is the world’s leading company devoted to patient-oriented renal therapy. Through over 2,700 kidney dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, we provide 32 million life-saving dialysis treatment to more than 215,000 patients worldwide. We are also the world's pre-eminent provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Chronic kidney failure is a condition that affects about 2 million individuals worldwide. Fresenius Medical Care’s 2010 revenues exceeded $12 billion.

In the United States, Fresenius Medical Care is the largest provider of dialysis products and services. With over 1,800 kidney dialysis clinics, we care for nearly 138,000 patients. Our clinical laboratory unit, Spectra furnishes 57 million renal-specific lab tests annually. Whether it is managed care, clinical educational or management services, clinical trial management, dialysis machines, supplies or renal pharmaceuticals, Fresenius Medical Care offers a comprehensive portfolio of caring and knowledge for the renal community. For more information, please visit www.fmcna.com.

About Harvest Properties

Founded in 2002, Harvest Properties is a full-service commercial real estate investment firm specializing in acquiring, developing, managing and financing commercial property, primarily through joint-venture investments in northern California. Harvest Properties strives to generate attractive returns for its financial partners and provide creative real estate solutions and outstanding service.

Harvest Properties portfolio comprises approximately eight million square feet of office, industrial, R&D and retail properties in the San Francisco Bay Area. For more information, please visit www.harvestproperties.net.