Harrison Street Expands San Diego Life Science Market
The Chicago-based firm has acquired two life science properties in the Sorrento Mesa neighborhood.
Chicago-based investment firm Harrison Street has expanded its portfolio the San Diego life science market. The company has acquired two properties in the Sorrento Mesa neighborhood in a partnership with BioScience Properties. The two properties total of 234,000 square feet and were recently converted to class-A life science space following a complete rehab project.
“San Diego is a primary life science market, benefiting from a highly skilled employee base and strong educational institutions,” Mark Burkemper, a senior managing director and head of transactions group of North America at Harrison Street, tells GlobeSt.com. “Many life science companies have been built in San Diego or have expanded their presence in San Diego for these attractive fundamentals.”
The recent renovation made these an attractive investment opportunity for the firm. “These assets are newly renovated, class A life science buildings that boast a diverse tenant roster and are well suited to meet the needs of current and future life science users,” says Burkemper. “In particular, the Sorrento Mesa submarket is the fastest growing submarket within San Diego.”
The firm has been focused on the San Diego market, investing across asset classes, including life science, seniors housing, student housing and medical office. “With a solid base of leading education and healthcare institutions, investing in San Diego aligns well with Harrison Street’s core investment thesis and expects to continue to grow its San Diego presence over time,” says Burkemper.
Harrison Street began escrow on the asset prior to the pandemic, but continued negotiations and closed the deal during the pandemic. Despite the recent disruption, the investor believes in the long-term viability of these assets and the market. “As long-term investors, the long-term life science fundamentals remain attractive,” says Burkemper. “Across Harrison Street’s life science portfolio, we have long-term leases with leading life sciences, biotech and big pharma tenants that have a strong credit profile. Harrison Street’s life science tenants have experienced minimal disruption due to the pandemic; in fact, a number of Harrison Street’s life science tenants are actively working on solutions to address the pandemic, including the development of a vaccine for COVID-19.”
Like its other assets, Harrison Street plans to hold the property for the long term, and plans to add value where it can. The two properties are located at 10770 Wateridge Circle and 6325 Lusk Boulevard and include laboratory, manufacturing, office and research and development space.