Bay Area Life Science Build Secures $400M Construction Loan

Phase 3 Real Estate Partners and Bain Capital Real Estate are the developers behind Genesis Marina, a 570,000-square-foot life science campus in Brisbane.

A major new development is planned for one of the Bay Area’s leading life science hubs. Phase 3 Real Estate Partners and Bain Capital Real Estate have secured more than $400 million in construction financing for Genesis Marina, a 570,000-square-foot life science campus in Brisbane.

The property is located on 8.7 acres, and it is part of the life science cluster in South San Francisco. The mature market is rated second in the country for life science, and as a result there is limited new development activity. Genesis Marina will become a trophy asset in the market with a waterfront location.

Barings funded the loan, and JLL’s capital markets team of senior managing director Tim Wright, managing director Todd Sugimoto and associate Daniel Pinkus secured the funding on behalf of the borrowers. According to Wright, the deal generated strong interest from lenders due to both the quality of the project as well as the tremendous growth in the life science sector.

The pandemic jump started the already robust life science sector. Last year, 29 life science funds had closed almost $16 billion and VC funding of life science companies is at an all-time high. Many investors are following the activity, trading out of distressed asset classes, like office buildings, and into the life science market. Some are putting money into the typical hubs, Boston, San Francisco and San Diego, and others are supporting the evolution of new life science hubs, like Raleigh and Philadelphia.

In San Francisco, new life science hubs are also emerging. Darren Hollak, director at Newmark and an expert on the market, says that Emeryville is set to become a leading life science hub in the nation. It currently has a low 5.7% vacancy rate and is home to 150 biotech companies are already located in Emeryville, including Novartis, Bayer Healthcare, Amyris and Zymergen. Demand is currently outpacing supply with 122,000 square feet of existing availability but 620,000 square feet of active tenant requirements.

Other life science hubs in the Bay Area are also attracting new development. A joint venture between Presidio Bay Ventures and Kinship Capital acquired 777 Industrial Rd with plans to redevelop the property into a 123,000-square-foot class-A life science building located within one of the Bay Area’s fastest growing life science clusters.

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