SOUTH SAN FRANCISCO, CALIF. — BioMed Realty Trust has entered into a definitive agreement to acquire two life sciences campuses in South San Francisco for approximately $298 million. The portfolio contains approximately 489,000 square feet of rentable space and development rights for an additional 946,000 square feet.
The first property is known as Science Center at Oyster Point. The recently developed campus includes two buildings containing approximately 205,000 square feet of office and laboratory space. The buildings are occupied by Elan Corp. under triple-net leases that expire in 2024 and 2025.
The second property is Gateway Business Park, a six-building, approximately 284,000-square-foot park. Elan Corp. occupies approximately 215,000 square feet of the property. In addition, FedEx Corp. occupies 50,000 square feet, and Genentech, Inc. occupies the remaining 19,000 square feet. The leases expire between 2012 and 2014. As part of the deal, BioMed expects to assume a development agreement with the City of South San Francisco that will allow the campus to be expanded to 1.23 million square feet.
If the properties close as intended, the San Francisco Bay Area would become BioMed's second largest market after Boston/Cambridge. Elan would also become the REIT's fourth largest tenant on a pro forma basis, representing approximately 7.2 percent of its tenant base.
“The acquisition in South San Francisco represents a strategic milestone for our company and our most significant new investment since our acquisition of the Center for Life Science | Boston,” said Alan Gold, chairman and CEO for BioMed. “It is an attractive investment opportunity that represents a strong fit within our core focus of acquiring well-located, state-of-the-art life science properties that offer a very attractive initial yield as well as long-term development potential.”
— Coleman Wood