San Diego Commercial Biotech Lab Real Estate Update – April 2020

Even in the widths of a year of market uncertainty due to Covid, San Diego’s biotech lab market maintains relative stability, particularly in the life sciences sector. Following executive action at the state level in March 2020, County put in place a commercial eviction moratorium for those tenants impacted by the pandemic. While there is still no definitive date for when lockdown restrictions will be lifted in California, Governor Newsom has indicated that some businesses could reopen.

BioScience Properties sells stake in life science portfolio.

The company has a new partner in the ownership of 10770 Wateridge Circle and 6325 Lusk Blvd., two Sorrento Mesa properties totaling 235,000 square feet. According to public records, the transfer between BioScience and Harrison Street involved transactions valued at a respective $135.9 million and $22.6 million.

DTx Pharma Expands Footprint in San Diego with New Office and Lab Space

SAN DIEGO, May 20, 2020 /PRNewswire/ — DTx Pharma, Inc. (DTx), a privately-held biotechnology company creating novel RNA-based therapeutics to treat the genetic drivers of disease, announced today the expansion of its footprint into a new 14,000 square foot lab and office space, located at 10655 Sorrento Valley Road, Suite 100, in the Sorrento Valley biotech cluster of San Diego, CA.

“We are very excited to be one of the first biotech companies to move into this state-of-the art lab and office space, joining many other important companies in this emerging area,” said Arthur T. Suckow, Co-Founder and CEO of DTx Pharma.  “This new facility represents an important strategic step for DTx.  It provides us with a solid foundation to grow our culture, expand our team and speed development and deployment of our fatty acid conjugate technology platform to solve the drug delivery challenges associated with RNA-based medicines.”  

DTx’s new facility in Sorrento Valley, which was completed less than a year ago, will allow the company to internalize its chemistry efforts, broaden the application of its fatty acid conjugate technology, and expand its team and infrastructure to support the future growth of the company.  DTx was launched in August 2017 and completed its $10.6M Series A in January 2020 with investment from FBV Fund I, Eli Lilly, Viva Biotech, ExSight Ventures and the Tech Coast Angels, among others.  

Now building: $164M life science campus in Torrey Pines

Healthpeak Properties will break ground on a three-building, state-of-the-art lab complex on Jan. 9.
(Courtesy of CBRE)

Boardwalk from Healthpeak Properties will include three buildings with more than 195,000 square feet of office and lab space

Healthpeak Properties is spreading its wings in the San Diego’s biotech market with a $164 million life science campus known as, “The Boardwalk.”

When completed in 2021, The Boardwalk will include three buildings with more than 195,000 square feet of office and lab space. And its amenities — a one-acre park, fitness facilities with spa-style locker rooms, a full-service restaurant, an expansive conference center and a plethora of outdoor collaboration spaces — are intended by the developer to be second to none in the high-priced region.

The project will be located 10265, 10275 and 10285 Science Center Drive in Torrey Pines, San Diego is scheduled to break ground in January 2020 by Irvine-based Healthpeak Properties, which already owns and operates around 2 million square feet of life science lab space facilities in San Diego. The REIT, whose stock is valued at $17 billion, operates a portfolio of 740 properties. It specializes in life science, senior housing and medical properties.

“The timing was perfect,” said Richard Danesi, an executive with commercial real estate brokerage CBRE who is helping to lease the property. “Record level venture capital is driving strong leasing activity in the market with very low vacancy rates.”

Asking rental rates in the market are $4.76 – $5.00 per square foot for Class A lab space were also a catalyst for the project, he said.
The Boardwalk will be located West of Interstate 5 and North of Genesse Avenue, close to three of Healthpeak’s existing holdings with two new buildings and the redevelopment of another. The idea is to secure a major biotech tenant to take the entire campus or identify  tenants for each of the three buildings, Danesi said. 

Healthpeak anticipates that a portion of The Boardwalk project will be ready for tenant move in March or April of next year 2021.