Boston Properties Lands 229K-SF Lease With Biotech Firm
The unnamed company signed a lease for the entire 751 Gateway project in South San Francisco, which is currently under construction and will deliver in 2024.
Boston Properties has secured a full-building lease at 751 Gateway, its life science development in South San Francisco. An unnamed leading biotech company has signed a lease for 229,000-square-foot lease for the building, which is currently under construction and will deliver in 2024.
751 Gateway is the first phase of a multi-phase life science project called Gateway Commons in South San Francisco. Boston Properties is developing the property in a joint venture with Alexandria Real Estate Equities, and it will own a 49% stake in the development upon completion.
The lease is another example of the fervent demand for life science space in the Bay Area—and capital is pouring into the area to respond. In November, IQHQ acquired Elco Yards, a fully entitled and shovel-ready office and life science development site in Downtown Redwood City. The plans allow for four buildings totaling 600,000 square feet and two residential buildings with 540 units, 147 of which will be reserved for affordable housing. The project is the first of its kind in the market.
In another example, Long Market Property Partners acquired a 22,043-square-foot research and development property at 1440 4th St. in Berkeley, California, in November, with plans to convert the property into a life science use. The investor secured $9.75 million in financing to purchase and reposition the asset. And, in June, Kilroy Realty Co. started construction on the second phase at Oyster Point, a premier life science campus on 50 acres in South San Francisco. One of five, the second phase will feature thee buildings totaling 860,000 square feet and represents an investment of $940 million.
According to Bob Pester, EVP of the San Francisco Region at BXP, “751 Gateway provides an excellent combination of location and amenities these companies use to attract talent and drive scientific discovery.” The property is located near a Caltrain building and has access to the 101 Freeway, and the campus will have best-in-class amenities.