Barings said Wednesday that it has closed a joint venture between Barings and Phase 3 Real Estate Partners / Bain Capital to reposition and recapitalize the Class-A office property, 1155 Island, in Downtown San Diego, CA, converting it to a premier Class A life science building.
Formerly known as The Thomas Jefferson School of Law, the 203,000 square foot, 8-story office building will be transformed into a life science property. It is expected to complete in late 2021.
Life science demand in this area is increasing due to the anticipated connectivity to UCSD, one of the top life science universities in the U.S, through the new downtown UCSD satellite building, as well as the late 2021 extension of the Blue Trolley line, connecting Downtown San Diego to the main UCSD campus, according to Barings.
”Physical characteristics of 1155 Island, including large floorplates, high slab to slab heights, make the building very conducive to the life science conversion, while access to the Gaslamp Quarter will provide retail, dining and entertainment amenities for its tenants,” said the company in a statement.
“This investment is a prime example of Barings’ value-add real estate investment strategy, which focuses on creating uniquely competitive real estate that attracts innovative and growing tenant demand” said Joe Gorin, Managing Director and Head of Portfolio Management and Value-Add Investing for Barings U.S. Real Estate Equity. “We target market locations and projects at the intersection of a highly educated workforce and a significant STEM employer presence. As the third-largest life science market in the US, it was only a matter of time before life science tenants would have high quality occupancy options within Downtown San Diego’s highly amenitized work, live, play environment. We are excited to help lead this migration.”
“The joint venture life science conversion of 1155 Island represents a new partnership between Barings and Phase 3 / Bain Capital,” said Chris Black, Barings Head of Real Estate Acquisitions, Western U.S. “Life science is one of the most dynamic industries with continued increases in private and public funding which will drive demand for the foreseeable future.”
The office property is located at the center of San Diego’s newest life sciences hub-Downtown San Diego.