KKR Invests $475M in San Diego Life Science Campus

KKR has made a $475 million investment in Alexandria Real Estate Equities’ Campus Point by Alexandria Megacampus, a nearly 2 million-square-foot life science megacampus in San Diego. The investment will provide Alexandria with long-term capital to support continued development, leasing and property upgrades.

Capital accounts advised by KKR invested in Alexandria’s majority ownership interest in the campus, located in San Diego’s University Town Center submarket. The New York-based global investment firm acquired a 49 percent noncontrolling equity interest in the Campus Point investment entity, representing approximately 28.5 percent indirect ownership in the underlying joint venture. Alexandria will maintain control of the underlying joint venture as it continues to oversee the property’s operations and development.

Peter Moglia, Alexandria CEO and chief investment officer, said in prepared remarks the strategic partnership and investment positions Alexandria to execute its business plan while creating long-term value for shareholders. He called the transaction an important step in the REIT’s efforts to optimize its capital structure and unlock value across its portfolio.

Eastdil Secured Savills acted as financial advisor and Proskauer served as legal advisor to Alexandria. Gibson Dunn served as legal advisor to KKR.

Campus Point under the microscope

Alexandria launched the initial phase of the Campus Point by Alexandria Megacampus in 2010. As of March 31, Campus Point was 95.4 percent occupied, with 1.3 million rentable square feet of properties in operation. The campus offers roughly 1.3 million rentable square feet of additional future development and redevelopment opportunities.

Adjacent to the University of California San Diego, the Salk Institute and Scripps Research, the campus is home to leading global pharmaceutical, biotechnology, research organizations and technology companies. Tenants include Novartis, Bristol Myers Squibb, Eli Lilly, Leidos and UC San Diego.

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Long-term leases account for approximately 98 percent of the campus’ rental revenue. In July 2025, Novartis signed a lease for a more than 466,000-square-foot, build-to-suit life science project with Alexandria at 10269 Campus Point Drive. The REIT broke ground on the development earlier this year and completion is scheduled for 2029. It is San Diego’s largest project currently underway. The deal was also the largest life science lease in Alexandria’s history.

A 427,000-square-foot research and development facility for Bristol Myers Squibb delivered in July at 4135 Campus Point Drive. It was the market’s second-largest development.

More Alexandria life science deals

Founded in 1994, the REIT is a pioneer in the life science real estate niche and is known as an owner, operator and developer of collaborative megacampuses in innovation cluster locations including San Diego, the San Francisco Bay Area, Seattle, Research Triangle in North Carolina, Maryland, Greater Boston and New York City.

In the San Diego region alone, Alexandria’s portfolio is comprises of 6.2 million rentable square feet, including Campus Point, and nearly 1 million rentable square feet of development assets as of March 31. Eli Lilly opened an 82,514-square-foot Lilly Gateway Labs site at One Alexandria Square Megacampus in San Diego’s Torrey Pines submarket in September 2025.

Earlier this year, the REIT signed a 105,000-square-foot, long-term lease agreement with Gladstone Institutes to be the anchor tenant at 1450 Owens, a 215,000-square-foot life science building in San Francisco. The seven-story property came online in 2024 and is part of Alexandria Center for Science and Technology at Mission Bay, a 6.6 million-square-foot megacampus. The deal calls for Gladstone to occupy about 20 labs starting in early 2027, with an option to purchase the leased space in the future.