Breakthrough Acquires Majority Stake in $236M Life Science Campus

Breakthrough Properties, the joint venture of Tishman Speyer and biotechnology investment firm Bellco Capital, has acquired a 65 percent stake in Callan Ridge, a two-building life science campus nearing completion in San Diego. Developer Healthpeak Properties will retain the remaining 35 percent.

The transaction valued the fully leased asset at $236 million, representing a stabilized cash capitalization rate of 5.3 percent based on the initial annual rental rate of $67 per square foot. Healthpeak’s net proceeds amount to approximately $130 million.

A Class A life science campus

The developer broke ground on Callan Ridge, a redevelopment involving a 90,000-square-foot structure being replaced by two three-story buildings totaling 185,000 square feet, in 2021. PMA, BNBuilders and Ferguson Pape Baldwin Architects are also on the project’s team.

Upon delivery, the Class A property will have floorplates ranging between 22,000 and 35,000 square feet, two levels of underground parking and a drop dock with hydraulic dock leveler. Amenities are set to include a roof deck, restaurant, fitness center and an outdoor covered patio space.

The campus will also have sustainable building features such as electrochromic windows, photovoltaic glass panels, recycled steel and concrete and drought-tolerant landscaping, as well as the largest single-building green roof in San Diego. The joint venture plans to pursue LEED Gold certification once the project is finalized.

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The property’s sole tenant is Turning Point Therapeutics, a subsidiary of Bristol-Myers Squibb Co., under a lease agreement ending in 2035. The company first leased 105,000 square feet in July 2023; the remaining 80,000-square-foot commitment will start in July 2024.

Callan Ridge is taking shape on 5 acres at 3020-3030 Callan Road in the Torrey Pines Science Park, some 16 miles north of downtown San Diego. The site has access to interstates 5 and 805.

Big players in the life science market

Breakthrough Properties came to life in 2019, with the purpose of acquiring, developing and operating life science properties in leading tech markets. The firm’s portfolio includes Torrey View, a 520,000-square-foot campus in San Diego and Boulder 38 by Breakthrough, a 9-acre campus set to feature office, lab and flex space in Boulder, Colo.

In 2023, the partnership received a $130 million construction loan from Corebridge Financial for the development of a 223,000-square-foot life science building in Philadelphia’s Center City district. First tenant fit-outs are expected this summer.

Healthpeak has also been recently active in the life science sector. In December, the firm received approval of entitlements for the second and third phases of a campus currently underway in South San Francisco, Calif. The project will comprise 1.7 million square feet at full build-out.