Expanding San Diego Life Sciences Campus Gets $165M Refi
In Phase 3, Bain will add 365K SF to Genesis Science Center, doubling its size.
Phase 3 Real Estate Partners and Bain Capital have secured a $165 refinancing for the Genesis Science Center, a 252K SF life science campus in San Diego that the joint venture partners are planning to expand.
JLL arranged a three-year loan with a variable interest rate from Capital One, which will pay off the existing debt on the property.
The joint venture bought the campus for $54M in 2019 from Brookfield Properties and Qualcomm in three transactions that were financed with a $90M loan from TPG Capital.
The partnership is planning to expand the Genesis campus, which currently has four buildings ranging from 60K to 198K, by building an 11-story, 365K SF R&D facility.
The new building is expected to be completed in 2024. The four buildings on the fully leased Genesis campus, located on Morehouse Drive, were built between 1985 and 1991.
The campus is in the Sorrento Mesa biotech cluster, which includes facilities for Aya Healthcare and Mesa Biotech. Last fall, Chicago-based Harrison Street and Sterling Bay acquired for $576M a site in Sorrento Mesa that the partners will develop into a life sciences campus.
JLL secured a $400M loan from Barings for the Phase 3, Bain partnership last year for the construction of another Genesis-branded campus to be located in the Bay area.
The project, known as Genesis Marina, will encompass about 570K SF on an 8.7-acre waterfront site in Brisbane, on the southern flank of San Francisco. Genesis Marina is scheduled to be delivered in Q1 2023.
The Genesis life sciences portfolio now includes properties in the three leading life sciences hubs in the US: Boston, San Francisco and San Diego.
Phase 3 partnered with Bain to build Genesis South Francisco, a 797K SF campus about a mile southwest of the Genesis Marina project, in 2019.
In October 2020, the partners sold Genesis South Francisco campus was sold to an affiliate of Ventas. The South Francisco campus features a 21-story tower—the tallest life sciences building in the US—and a 12-story tower.
The life sciences hub in the Boston metro is estimated to encompass nearly 25M SF, with nearly the same amount under construction.
San Francisco is the second largest hub, with about 14M SF of life sciences space and 11M SF under construction, followed by San Diego, with 12M SF and another 4.5M SF in the pipeline, according to a recent report in CommercialCafe.