Alexandria Lands Record Deal
The transaction marks the largest life science lease in the company’s history.
Alexandria Real Estate Equities Inc. has executed a 16-year lease with what it describes as “a longtime multinational pharmaceutical tenant” for a 466,598-rentable-square-foot build-to-suit research hub on the Campus Point by Alexandria Megacampus in San Diego’s University Town Center submarket.
The transaction reportedly is the largest life science lease in Alexandria’s 31-year history.
The tenant was not identified, and ARE did not reply to Commercial Property Executive’s request for information.
In a prepared statement, Daniel Ryan, ARE co-president and San Diego regional market director, referred to the new lessee as “one of our long-standing, highly innovative tenants.”
READ ALSO: 6 Key Trends Shaping the Life Science Sector
Campus Point currently has 1.3 million rentable square feet in operation, which is 98.8 percent occupied. The campus offers about a further 1.3 million rentable square feet of additional future development and redevelopment opportunities.
Its location in the University Town Center submarket provides convenient access to the I-5 and I-805 freeways and the UCSD Health La Jolla trolley stop.
As currently scheduled, construction of the development project will start next year and deliver in 2028. Its sustainability features will be extensive. The building will target 100 percent electrification and LEED Gold Core & Shell and Fitwel certifications and will prioritize energy efficiency and water use reduction.
Its design reportedly will emphasize natural light and feature an expansive terrace that serves as a central gathering place. Onsite amenities will include an event and conference center, a members-only wellness center, a farm-to-table restaurant, a communal bodega and convenience retail. The campus will feature recreational fields and pickleball courts, expansive green space, walking trails and a new organic garden.
Big plans, big deals
The San Diego life science space market has been characterized recently by several substantial milestones, according to a second-quarter report from Savills.
• Sterling Bay and Harrison Street delivered 690,000 square feet of space as part of the first phase of Pacific Center in Sorrento Mesa, Calif.
• RayThera, a biotech founded in 2023 and focusing on small-molecule therapies in immunology, has raised $110 million in Series A funding.
• Pfizer recently sold its five-building, 631,000-square-foot campus on Science Center Drive in Torrey Pines to BioMed Realty for $255 million.
In January, ARE sold a 241,963-square-foot life science campus in San Diego to King Street Properties for $120 million. The acquisition of The Esplanade, which was brokered by Newmark, also involved a $166 million seller carry-back loan.
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