DivcoVest Pays $86M for Life Sciences in San Diego

11119 N. Torrey Pines Road. Image courtesy of DivcoVest

DivcoVest has expanded its San Diego and life sciences portfolio with the acquisition of 11119 N. Torrey Pines Road, a 72,506-square-foot Class A laboratory developing in the Torrey Pines Study Cluster, for $86 million from Alexandria True Estate Aquities Inc.

In 2007, Alexandria bought the four.four-acre home for $42.six million and converted a detached developing. The developing is leased by California Institute for Biomedical Studydivision Scripps Study. Calibr has occupied the home because 2012 and focuses on the discovery and improvement of drugs for a wide variety of human ailments, such as cancer.

Gregg Walker, president of DivcoVest True Estate Asset Management, stated in a ready statement that the acquisition represented a uncommon chance to obtain a devoted laboratory in Torrey Pines under replacement price and secured by a credit lease. Walker stated Torrey Pines is a powerful and hugely sought-right after submarket with extended-term development due to all-natural provide constraints.

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Torrey Pines is regularly ranked as one particular of the prime life science submarkets in the nation and has the highest typical rents and lowest direct vacancies in San Diego. The acquisition is the very first by a private actual estate investor because 2000 and is one particular of only 3 study properties on the marketplace that is not owned by a public REIT, nonprofit organization or owner/occupier. The home was sold to a restricted group of certified purchasers by Eastdil Secured.

The LEED Gold certified laboratory developing was constructed in 1990 and totally renovated in 2012. The developing has on-web page showers and locker rooms, as properly as conference rooms and a fitness center. It is situated across from the coastal cliffs overlooking the Pacific Ocean and Torrey Pines Golf Course, which has hosted the US Open as properly as other skilled golf tournaments. It is a seven-minute drive from UC San Diego’s North Campus and close to many planet-renowned study institutes, such as Scripps Study, The Scripps Institution of Oceanography, the Salk Institute for Biological Research, and Sanford Burnham Prebis.

Walker stated the home complements DivcoVest’s current nearby and national life sciences portfolio. The San Francisco-primarily based organization, which has six other offices in the US, such as Cambridge, Mass.

In November, DivcoVest broke ground on 441 Morgan Ave., the company’s fifth life science developing inside its Cambridge Crossing complicated. The 375,000-square-foot laboratory home will have 12 floors, such as two penthouse floors. The organization has currently completed 1.9 million square feet of the four.five million square foot improvement, which will span 43 acres and include industrial, residential, retail and dining space. Present tenants consist of Bristol Myers Squibb, Phillips, Sanofi and Cerevel Therapeutics.

Alexandrian reinvestments

Alexandria stated in its statement that the sale is an instance of its method to capture worth and recycle assets. The REIT capitalizes on powerful private marketplace valuations by raising substantial equity capital for reinvestment in worth-added improvement and redevelopment projects. As of March 31, Alexandria’s hugely leased pipeline of six.7 million square feet of ongoing and close to-term projects is anticipated to create a lot more than $610 million in annual net operating earnings accretion by means of early 2026.

Peter Moglia, managing director and co-chief investment officer at Alexandria, stated in ready remarks that standalone properties no longer match the REIT’s concentrate on aggregating its hugely sought-right after mega campuses. He stated the lack of higher-excellent life science assets combined with the company’s asset efficiency is making powerful demand for investment possibilities. Moglia added that the sale underscores Alexandria’s capacity to monetize its investments with substantial profit margins even in tough instances.

Alexandria is targeting $1.five billion in disposals and sales of fractional stakes this year. To date, about $865 million in transactions have been completed or are topic to letters of intent and sales agreements. As of March, the REIT had a total marketplace capitalization of $33 billion and 75.six million square feet of space in North America, such as 41.9 million square feet of operating leasable home, 9.7 million square feet of brief-term lease space and medium-term improvement and reconstruction projects and 18.five million square meters of future improvement projects. The organization focuses on life science, agtech and sophisticated technologies campuses in significant US innovation clusters, such as San Diego, Higher Boston, the San Francisco Bay Region, New York, Seattle, Maryland and North Carolina’s Study Triangle.