LaSalle Investment Management (“LaSalle”) has acquired partial interest in the world headquarters and life sciences property of Illumina, a global leader in DNA sequencing and array-based technologies.
LaSalle made the investment on behalf of its U.S. core open-end real estate fund, LaSalle Property Fund with the property’s developer, an S&P 500® U.S. equity REIT.
This transaction represents LaSalle’s first investment in the life sciences property sector.
Located in the heart of the coastal infill submarket of University Town Center in San Diego, California, the Class A property consists of 793,000 square feet spread across six, state-of-the-art office, lab, and accessory buildings on 44 acres.
The life sciences property is 100% occupied by Illumina and is under a long-term lease agreement serving as their world headquarters. As part of the transaction, LPF will participate with other campus co-owners to invest in potential future projects that will expand and densify undeveloped land located on the campus site.
“This acquisition is a strong fit for our portfolio and represents a continuation of our ability to source world-class properties that provide an attractive income return with the potential for significant appreciation. We are pleased to have entered the life sciences sector with a best-in-class partner in a leading life sciences submarket, University Town Center,” said Jim Garvey, Portfolio Manager for LaSalle Property Fund.
“We are excited to acquire this world-class life sciences property in a highly strategic location, as San Diego is one of the largest U.S. biotech hubs. The San Diego market is comprised of over 15 million square feet of life science space, supported by strong occupancy and rental fundamentals, and The University of California at San Diego registers as the single greatest source of graduates in biomedical and biological sciences in the nation,” said Erick Paulson, Managing Director of Acquisitions at LaSalle.