A Durham, N.C.-based biologics company is relocating its Memphis presence, signifying a boon to the Northeast office submarket.
Bioventus LLC has inked 38,880 square feet of office and manufacturing space in Goodlett Farms Business Campus, 1900 Charles Bryan Road, in Cordova.
Formed in May, Bioventus emerged from venture capital firm Essex Woodlands and London-based medical device maker Smith & Nephew Inc. Bioventus, which bills itself as a leader in active orthopedic healing, is the successor to Smith & Nephew’s Biologics Division/Clinical Therapies business that generates $250 million in revenue annually worldwide.
Bioventus currently occupies about 30,000 square feet of space collectively at Smith & Nephew’s Brooks and Holmes road locations.
Bioventus has about 500 U.S. employees, including about 130 in Memphis. The firm expects to move its Memphis-based employees into Goodlett Farm’s larger space by February. The expansion will mean a $5 million investment and the creation of 44 new jobs.
A $300,000 building permit was recently filed with the city-county Office of Construction Code Enforcement for interior alterations to the existing office space, including the addition of a new exterior loading dock. Grinder, Taber & Grinder Inc. is the contractor.
The move enables Bioventus to consolidate its Memphis functions, including manufacturing, quality and human resources, said Anthony James, Bioventus vice president of operations and quality.
“It’s very close to the interstate, and just from a shipping and distribution standpoint, we want to be in the Memphis area,” James said. “A lot of medical device companies are in the Memphis area, a lot of medical device industry is developing in the Memphis area, so from that standpoint, it’s a strategic market and gives us the ability to get our products out to our customers quickly.”
Goodlett Farms Business Campus is made up of two Class A buildings – 7130 Goodlett Farms and 1900 Charles Bryan Road – attached by a sky-bridge that total 368,967 square feet on 52 acres. Current tenants in the park are Stratas Foods, Hunter Fan Co., Yusen Logistics (formerly NYK Logistics Americas Inc.), Regions Bank, State Farm Mutual Automotive Insurance Co. and Regional Adjustment Bureau.
Larry Jensen, president and CEO of Cushman & Wakefield/Commercial Advisors LLC, represented Bioventus in lease negotiations. Bentley Pembroke, vice president Commercial Advisors Asset Services, represented the landlord, Dallas-based JP Realty Partners.
“What Goodlett Farms Business Campus offers is a multi-tenant opportunity in what is primarily an owner-occupied corridor on Goodlett Farms Parkway,” Pembroke said. “We’ve had a lot of success over the last couple of years in attracting regional-type headquarters users at those buildings.”
Bioventus’ 38,880-square-foot lease brings Goodlett Farms Business Campus to 97 percent occupancy but only represents about 15,000 square feet of absorption. That’s because Bioventus will occupy 23,000 square feet recently vacated by Yusen Logistics/NYK.
Pembroke said Yusen had a termination option coming up in about two years, and was allowed to exercise that right early in order for Commercial Advisors to get space back and do a direct lease with Bioventus.
Commercial Advisors’ Jacob Biddle represented the sublease space occupied by Yusen that was terminated to make room for the Bioventus lease. Yusen still occupies about 30,000 square feet at Goodlett Farms.
• In other deals, Keystone Automotive Operations Inc. leased 10,980 square feet in Nonconnah Corporate Park, 1531-1543 Corporate Ave.
The Exeter, Pa.-based specialty automotive equipment distributor will relocate its Memphis cross-dock from 2888 Shortside Lane.
The Colliers International industrial team of Andy Cates and Preston Thomas represented the tenant. Elliot Embry of NAI Saig Co. represented the landlord, Nonconnah Holdings LLC.
Also, Steve Brinkmeyer of Blocker And Wallis Services LLC bought 887 Rayner St. from T & T Realty Investments LLC for $375,000.
The Class C warehouse is 35,000 square feet on nearly 2 acres. Built in 1969, its 2012 appraisal from the Shelby County Assessor of Property is $533,700.
Cates and Thomas handled the transaction.
Blocker & Wallace Service sells new and remanufactured parts for Gardner Denver industrial blowers at 1472 Rogers Ave. The company will remain there and expand into its newly acquired warehouse across the street, Thomas said.
Also, Blocker & Wallis’ $300,000 mortgage was filed with Regions Bank in conjunction with the purchase.
• Meanwhile, E’s 24 Hour Café signed a 1,100-square-foot lease in the former CK’s at 4969 Park Ave. near Mount Moriah Road.
Barry Maynard of Trezevant Realty Corp. represented the tenant. Loeb Properties Inc.’s Chris Heinz represented the landlord.
E’s 24 Hour Café is owned by The Tushek Co. LLC, made up of Eric Tushek, who also owns four local TCBY stores, and his stepfather, Rip Crain. The restaurant – which inked its first lease in July at 4275 Summer Ave. and has since opened up in the old CK’s at 1308 Union – is similar in price point to the old Dobb’s House and CK’s Coffee Shop, yet slightly more upscale, Crain said.