Life Sciences Sector Revs Up During COVID

SAN CARLOS, CA—Developer Presidio Bay Ventures, in a joint venture with private investment firm, Kinship Capital, recently acquired 777 Industrial Rd. The joint venture 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.

Presidio Bay and Kinship Capital were awarded the acquisition after demonstrating a clear commitment to closing during a closely held off-market sales process. This process was launched soon after the initial shelter-in-place orders were announced earlier this year.

“We’ve seen tremendous growth and opportunity in the life sciences sector, which has only accelerated through the COVID-19 pandemic with renewed investment into research and development. In particular, San Carlos has garnered momentum in the space in recent years with its East Side Innovation District Plan and several new or under development biotech campuses,” said K. Cyrus Sanandaji, managing director for Presidio Bay Ventures. “With 777 Industrial Rd., we’re proud to continue expanding our investments in the life sciences sector and join its burgeoning community in San Carlos. As our first investment in San Carlos, we look forward to building a longstanding relationship with the city’s planning and building departments as well as the broader community.”

Currently home to a 45,000-square-foot car dealership and surface parking lot, the project will take full advantage of the existing engineering infrastructure, which was already designed to withstand significant loads.

The design includes a vertical addition to create a three-story building over parking at grade level. With a unique glazing pattern, brushed aluminum window system and natural finishes, the project design draws inspiration from the neighboring approved and completed life science buildings. The reuse and repurposing of both the existing podium and previously installed solar photovoltaic cells will result in a development that is both economical and environmentally sustainable.

“In terms of sustainability, the project will feature an extensive deployment of solar arrays on the rooftop and is further committed to the transition to electric vehicles through a property-wide installation of EV chargers,” Kabir Seth, chief operating officer at Presidio Bay Ventures, tells GlobeSt.com. “Presidio Bay is also deploying a fully autonomous robotic parking system that will reduce parking congestion during peak hours.”

In terms of health and wellness, the project will feature air filtration technology to ensure the highest possible indoor air quality utilizing Needlepoint Bi-polar Ionization, UV BIO-Wall and MERV-16 filters. These combined technologies significantly reduce the existence and threat of pathogens (viruses, molds and bacteria), odors (from cleaning products, volatile organic compounds, chemicals and smoke) and particulates (such as ash, dust, pollen and pet dander).

Presidio Bay also plans to deploy a customized building application that will provide a range of functionalities from mobile touchless access control to information on utility consumption for each tenant, which plays into the sustainability approach. Additionally, there will be several cloud-based sensor technologies deployed throughout the project to monitor items such as occupant density, air quality and the physical health of building equipment in real-time, from elevators to HVAC units to boilers and plumbing systems. All of this data will be available to building management and tenants to provide a 21st century commercial tenant experience, GlobeSt.com learns.

The project design and entitlement process commenced immediately after entering into the purchase agreement earlier this year. The goal is to secure regulatory approvals by first quarter 2021 and break ground in fourth quarter 2021.

Michael Jensen of Kidder Matthews represented the seller. Marc Pope and Ben Paul of Cushman & Wakefield have been engaged to represent the project and lead the leasing efforts.