CBRE Investment Management fund has acquired a majority stake in two life science portfolios in the Mission Bay knowledge cluster of San Francisco.
The fund made the investment, which includes a total of 1,020,600 square feet of Class A life science space, through a joint venture with a life science property developer/operator that developed the portfolios.
The first portfolio is located at 409/499 Illinois Street and 1500 Owens Street in San Francisco and includes three purpose-built life science facilities totaling 644,788 square feet. The buildings are situated on a 4.8-acre waterfront site and feature 15′ ceiling heights, an outdoor plaza with public art, two on-site restaurants, a rooftop deck, a fitness center and an outdoor garden. The properties are LEED Gold and LEED Silver certified.
The second portfolio is located at 455 Mission Bay Boulevard South, 1450 Owens Street and 1700 Owens Street and includes two existing buildings, which total 375,604 square feet, and a 212,796-square-foot purpose-built life science development that is expected to break ground in Q1 2022. The properties are LEED Gold certified.
“These portfolios are ideally situated in the Mission Bay knowledge cluster, one of the top life science markets in the United States due to the confluence of talent, infrastructure and an unrivaled innovative culture,” said Sondra Wenger, CBRE Investment Management Head of Americas Commercial Operator Division. “We believe that the life science market, especially in the San Francisco Bay Area, is resilient and poised to continue growing over the next several years, with 1,500 life science companies and 60,000 life science employees already calling the area home.”
The portfolios are positioned in the heart of Mission Bay and adjacent to UCSF, one of the leading research institutions in the country, and the new Chase Center, which has brought significant new retail and entertainment amenities to the neighborhood. The area is served by light-rail access, a rarity for life science product in the Bay Area, with plans to build a passenger ferry dock directly outside the 409/499 Illinois buildings.