A rendering of the Pitt Immune Transplant & Therapy Center Phase I.

CHICAGO—Locally-based Ventas Inc. announced on Monday four new university-based research and innovation developments in partnership with Wexford Science & Technology, LLC of Baltimore valued at approximately $800 million.

The four Ventas-Wexford projects are located in Pittsburgh, Philadelphia and St. Louis and are part of Ventas' near-term $1.5 billion R&I pipeline of expected new projects previously announced by Ventas.

The four projects include the development of a $280-million research, academic medicine and innovation hub anchored by University of Pittsburgh to house ground-breaking immunotherapy research in collaboration with the University of Pittsburgh Medical Center and co-located with UPMC's Shadyside Hospital. The project totals 350,000 square feet and will house the Immune Transplant and Therapy Center.

The development is expected open in two phases, with the first and second phase expected to be completed in 2021. The full project is 70% pre-leased.

Ventas also reports two new projects in the City of Philadelphia. The first is a a new development that expands the Philadelphia uCity Square Knowledge Community associated with the University of Pennsylvania. Also in uCity Square, Vexel will develop a state of the art College of Nursing and Health Professionals for Drexel University. These two projects will total $400 million and 650,000 square feet.

Ventas expects the College of Nursing and Health Professions, Drexel University, to open in 2022. The firm anticipates that the Knowledge Community at uCity Square will open in early 2022. Ventas owns four buildings in the uCity sub-market that are nearly 100% leased.

The final project announced by Ventas calls for the expansion of the vibrant Cortex Innovation Community associated with Washington University in St. Louis. The $115-million, 320,000-square-foot development is located in the Cortex Innovation Community. The new development adds to Ventas's Cortex R&I portfolio of four owned buildings totaling more than 700,000 square feet, which are nearly 100% occupied.

The projects are 40% pre-leased and are expected to generate more than a 7% cash yield, and over an 8% GAAP yield, upon stabilization.

Combined with a $77-million project announced in late February with Arizona State University, Ventas has now announced a total of $900 million in new projects that add approximately 1.5 million square feet to its portfolio.

“Ventas and Wexford are proud to partner with leading research universities, health systems, academic medical centers, life science companies and entrepreneurs in the creation of Knowledge Communities and innovation hubs. We are committed to collaborating with and supporting these world-class research institutions, pioneers in biomedical research, academic medicine leaders and innovators as they develop life-changing therapies, conduct groundbreaking scientific research, and train clinicians to improve the lives of millions of patients as the population rapidly ages,” says Debra A. Cafaro, Ventas chairman and CEO.

Ventas currently has relationships with more than 15 leading research universities in its R&I portfolio. Pro forma for announced developments, Ventas's R&I portfolio will total nearly eight million square feet and is expected to generate approximately $230 million in annual net operating income upon stabilization of announced new developments.

Instant Insights /

Ventas to Move Forward with $800M in New University-Based Research & Innovation Developments

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