Healthpeak to Add 1.3 MSF to Bay Area Life Science Campus

The Vantage campus is taking shape next to Genentech’s headquarters. Image courtesy of Healthpeak Properties

Healthpeak Properties has received approval of entitlements for the second and third phases of Vantage, its life science campus underway in South San Francisco, Calif. The development is expected to grow by some 1.3 million square feet and reach approximately 1.7 million square feet at full buildout.

Healthpeak broke ground on the first phase of the 20-acre project in 2022 and completed it earlier this year. Flad Architects designed the two build-to-suit properties measuring roughly 343,000 square feet, together with a 40,000-square-foot amenity building that includes multiple dining options, conference space and a fitness center.

READ ALSO: Life Science Market to Bounce Back

The LEED Gold-certified buildings feature five and six stories with floorplates averaging 35,000 square feet. Those properties are 52 percent leased to Astellas Pharma—a Japanese pharmaceutical company—which occupied its space this month.

Phases II and III will rise on Forbes Boulevard, providing access to downtown San Francisco’s amenities. A host of dining and retail options, including The Shops at Tanforan, will be within 3 miles, while San Francisco International Airport will be some 4 miles south.

In October, Healthpeak Properties entered into a definitive agreement with Physicians Realty Trust to combine in an all-stock merger. Valued at $21 billion, the new company will own a 52 million-square-foot portfolio of health-care facilities.

The Golden City’s life science developments

In the beginning of the year, Lane Partners received $373 million in financing for the construction of the first phase of a mixed-use, life science development that is set to encompass some 3 million square feet upon full buildout. Tenants at the $1 billion property that is some 2 miles away from Vantage are expected to move in by the end of 2024.

In May, a joint venture between Trammell Crow Co. and CBRE Investment Management broke ground on a 234,000-square-foot life science project in Redwood City, Calif. The Class A building is slated for delivery at the end of next year.

San Francisco’s office market holds steady

The San Francisco metro had some 6 million square feet of office space under construction as of October, amounting to 3.8 percent of total stock, according to a CommercialEdge report. The Golden City was surpassed by Boston and Seattle, which had development pipelines of 13.7 million and 6.6 million square feet, respectively.

In terms of sales, San Francisco saw $643 million in assets changing hands, for an average of $336 per square foot. Recent transactions in the area include Rubicon Point Partners’ purchase of The Townsend Building. CBRE Investment Management sold that property for $72 million.