345 park avenue south

Deerfield Management plans to convert an unused office building into drug-research labs.

Health-care investment firm Deerfield Management Co. is moving to convert a Manhattan building into a drug-research laboratory and office space for $635 million, a promising sign that long-running efforts to turn New York City into a hub for the biotech industry are taking root.

New York-based Deerfield recently bought an unoccupied 12-story office building in the trendy Nomad neighborhood and secured financing for the project, according to Deerfield and city officials.

The firm plans to open the renovated facility by early 2021 with more than 300,000 square feet of ready-to-use laboratory space, office suites and other amenities for researchers and startups, the officials said.

Under its deal with the city, Deerfield is committing up to $30 million to set up a workforce-training fund and will get in return $92 million in tax incentives over 20 years. The tax breaks are part of a $500 million city initiative to create a life-science industry presence to compete with longtime industry hubs in San Francisco and Boston.

The city estimates Deerfield's project will create 1,400 jobs.


Read the full story in The Wall Street Journal