CBRE Investment Acquires Majority Stake in Two Life Sciences Portfolios

A fund sponsored by CBRE Investment Management – formerly known as CBRE Global Investors – recently acquired a majority stake in two life science portfolios in the Mission Bay knowledge cluster of San Francisco. The fund made the investment, which includes a total of 1 million square feet of class-A life science space through a joint venture with a life science property developer/operator that developed the portfolios. The price was undisclosed.

The first portfolio is located at 409/499 Illinois St. and 1500 Owens St. in San Francisco, and includes three purpose-built life science facilities totaling 644,788 square feet. The buildings are on a 4.8-acre waterfront site and feature 15-foot ceiling heights, an outdoor plaza with public art, two on-site restaurants, a rooftop deck and an outdoor garden. The properties are LEED Gold- and LEED Silver- certified.

The second portfolio is located at 455 Mission Bay Blvd. South, 1450 Owens St. and 1700 Owens St. This grouping includes two existing buildings which total 375,604 square feet and a 212,796-square-foot purpose-built life science development expected to break ground in first quarter 2022. The properties are LEED Gold-certified.

“These portfolios are ideally situated in the Mission Bay knowledge cluster, one of the top life science markets in the United States due to the confluence of talent, infrastructure and an unrivaled innovative culture,” said Sondra Wenger, CBRE investment management head of Americas commercial operator division. “We believe that the life science market, especially in the San Francisco Bay Area, is resilient and poised to continue growing over the next several years, with 1,500 life science companies and 60,000 life science employees already calling the area home.”