Pfizer Takes 105,000 SF in Mission Bay Project

The building Pfizer will occupy is under construction at 455 Mission Bay Blvd. S., across the street from the Mission Bay campus of the University of California at San Francisco. Pfizer and UCSF recently concluded a three-year, $9.5 million partnership designed to speed drug discovery and development between the company and the California Institute for Quantitative Biosciences, which is located a few blocks from 455 Mission Bay.

The Mission Bay area is a 303-acre area that previously housed a landfill, rail yard and warehouses. It is now a burgeoning biotech hub. Merk & Co. leases 66,000 sf at 1700 Owens St, which also is owned by ARE, and FibroGen is close to occupying its half of a 430,000-sf Shorenstein development at 16th and Illinois streets, and has an option for the other half.

In addition to 455 Mission Bay, Alexandria also is developing 1500 Owens. The building at 1500 Owens will have six stories and 158,000 sf.

Alexandria's second quarter conference call will occur later this week. During the first quarter conference call in May, Alexandria said it had a signed 50,000-sf lease agreement with an undisclosed tenant -- believed to be UCSF's Orthopedics Institute -- for 1500 Owens St., the steel for which has been erected. ARE's first building at Mission Bay, 1700 Owens, is 95% leased or committed, the company said in May.

Also in the first quarter, Alexandria completed its sell-off of five class B properties in Alameda, Calif., totaling 272,730 rentable sf, for about $170 per sf or about $46.4 million. The buildings reportedly had a significant amount of near-term rollover.