TPG Real Estate Finance Lends $96M for San Diego Biotech Conversion


TPG Real Estate Finance Trust is putting its massive capital pool to scientific use.

The newly formed lending affiliate of TPG Capital provided $96.4 million in financing to convert a vacant four-building office complex into a new laboratory campus in San Diego’s University Towne Center.

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Working on behalf of the borrower, a partnership between the San Diego-based development firm Phase 3 Real Estate Partners and an institutional investor, HFF arranged the three-year, floating-rate loan to recapitalize the equity invested in the acquisition and fund a portion of the conversion.

The 311,022-square-foot Genesis at Campus Point consists of four-story and two-story office buildings, an amenities building and another seven-story office building with floor-to-ceiling windows.

Phase 3 Real Estate and its partners purchased the office properties this spring in an all-cash deal. Reports at the time noted that the developers paid affiliates of Chicago-based Walton Street Capital and Irvine, Calif.-based Greenlaw Partners $51.6 million for two of the buildings.

Once converted, the new lab campus will contain multiple conference rooms, a café, fitness center, large balconies and covered and surface parking for employees.

The existing office buildings at 4224-4244 Campus Point Court and 10210 Campus Point Drive are located in the “Golden Triangle,” near the University of California, San Diego. The area is home to several technology, biotech and research institutes.

San Diego ranks as the nation’s third largest biotech cluster, according to a recent report from the national real estate services firm JLL.

Senior Managing Director Tim Wright, Managing Director Todd Sugimoto and Director Zack Holderman led the HFF debt and equity teams on behalf of the borrower.