Luminous and Virtus Plan Major Overhaul of Scripps Ranch R&D

Luminous Capital Management, in partnership with Austin-based Virtus Real Estate Capital, recently acquired 10225 Willow Creek Rd., a 75,000-square-foot industrial/R&D building in the Scripps Ranch submarket. The seller and former occupant of the building was LG Electronics U.S.A. Inc., which sold the property for $12.62 million ($168 per square foot).

Luminous and Virtus plan to execute renovations to the project to position it for occupancy as a bioscience manufacturing plant. The property features the ability to create 28 feet of clear height, all of which aid in the production of pharmaceuticals and other therapeutics. 

“The Interstate 15 corridor is emerging as a critical market for bioscience manufacturing because it offers proximity to the life sciences discovery nucleus – the labs in Torrey Pines and UTC/La Jolla – at a significantly reduced cost,” says Bob Dougherty, who founded Luminous earlier this year with partners, Matt Stephenson and Tom Lam. “Luminous was attracted to the Willow Creek property for this reason, along with the convenience of its Scripps Ranch location to a well-educated talent pool.”

The property will be made available to users in 2022 upon completion of the planned upgrades.

“Significant investment has poured into biotech over the last five to seven years. Lab discoveries are beginning to transition into the production phase, driving a growing wave of demand for manufacturing space,” says Matt Withey, managing director. “At the same time, there is a shortage of available land and industrial properties suitable for conversion in San Diego, and Willow Creek is well-positioned to capitalize upon this acute supply-demand imbalance.”

Heading up the life science repositioning is Ferguson Pape Baldwin Architects for design and a general contractor with biotech experience is overseeing the construction. Tim Olson and Tony Russell of JLL will spearhead the project’s leasing. Virtus provided joint venture equity for the renovation and repositioning.  

LG was represented in the sale of the building by Louay Alsadek, Darla Longo, Barbara Perrier, Hunter Rowe, Evan Knudson, Maddie Mawby and Eric Parra of CBRE. John Chun and John Marshall of JLL arranged the equity joint venture between Luminous and Virtus.