Accredo Health Group Inc. announced a 10-year renewal of its 240,000-square-foot headquarters at Century Center, positioning the nation's largest specialty pharmacy and a major fixture of Memphis' health care industry for future growth. The General Investment & Development Companies and Accredo agreed to renew all leases for Accredo's five-building campus, effective January 1, 2010.
Accredo, which is the specialty pharmacy business of Medco Health Solutions, Inc. (NYSE: MHS), is gaining space at its Century Center headquarters in Eastern Memphis and will continue its "work at home" program for Memphis-based employees. With staff expansions and work at home programs, Accredo's total employment in the Memphis area now stands at approximately 1,750. There are still additional opportunities to expand its space at Century Center, which was a factor in Accredo's decision to renew.
As part of the renewal, Accredo will create a new corporate headquarters and visitor center, as well as improve and expand employee amenities and parking in the campus. Accredo's Proherant Health, Inc. business unit, which provides patient education, clinical research and other services for biotech, pharmaceutical and medical device manufacturers, will be shifted to Goodlett Farms Parkway in Cordova, Tenn. - a standalone location to build and grow the business.
"Accredo has been an important driver of Medco's growth. We recognize and appreciate the talent and efforts of our employees in our Memphis headquarters who have contributed to Accredo's extraordinary success. Our renewed commitment to the Memphis community reflects our belief that local talent and expertise will continue to fuel Accredo's future growth," said Steve Fitzpatrick, president of Accredo. "I am thrilled that we have this opportunity to reconfigure the space and upgrade key areas for both our employees and our valued visitors, while enhancing Accredo's ability to serve the needs of our patients."
Accredo provides patients with medications that require special handling, such as refrigeration and protection from light, for a variety of rare or complex medical conditions, such as cancer, hemophilia, pulmonary arterial hypertension, multiple sclerosis, autoimmune disorders and other rare conditions.
Lease rates for the properties and other financial terms of the transaction were not disclosed. Accredo, whose Memphis location gives it convenient access to ship medications nationwide, occupies more than 40 percent of Century Center.
"Accredo has its roots in Memphis from its founding during the early 1980s and this agreement continues that bond," Fitzpatrick said. "We pride ourselves on the 'high-touch' quality of care for patients and our employees are at the heart of delivering that care. The pharmacy schools and universities in the Memphis area have helped train and develop the talent and leadership necessary for our company to grow to its current heights."
CB Richard Ellis assisted Accredo in conducting a strategic facilities assessment and represented the tenant in the lease renewal transactions. Existing incentives with Shelby County and Memphis will remain in place through 2017 for the Century Center campus.
Medco Health Solutions, Inc.