Caleb Hodge on the KWP Occupier Services team represented clinical-stage biotechnology firm Armata Pharmaceuticals at two locations in the Marina del Rey market of Los Angeles.
At 4503 Glencoe Ave., Armata occupied 35,453 SF and, as they were nearing the end of a 10-year lease (2.5 years remaining), the firm’s existing lease economics were well below market rate. Moving forward with lease options, Caleb and team were mindful of Armata’s crucial location considerations: Access to biomedical talent, improved facilities, cost management, and minimal disruption to operations. With any tenant, 20,000 SF or larger, the right time to begin needs analysis and site explorations for potential relocation is two years prior to lease expiration. For Armata, the even longer lead time of 2.5 years was critical in creating leverage to use in the existing space (renewal) negotiation, demonstrating to the landlord that moving was a real possibility. After complex negotiations and constant communication with the landlord and client, Caleb renewed Armata in their existing location, at terms well below market rate. In addition to rent concessions, he negotiated a free rent period and TI for back-office updates, break room expansion and modernization of the space.
During the pandemic, Armata raised over $45 million to expand operations and meet industry demand for its proprietary bacteriophage-based technology. As part of its expansion, Armata needed additional space to house its administrative, research and development, and manufacturing functions. Caleb represented Armata in the lease of 5005 McConnell Ave., a 56,300 SF stand-alone, creative office campus to meet their current and future growth needs.
As property managers, the KWP Real Estate team oversaw the complete renovation and repositioning of 5005 McConnell Avenue, from industrial/flex to creative office, a highly successful effort that utlimately attracted Armata and drove value for owner Montana Avenue Capital.
