Johnson & Johnson Innovation, the strategic venture arm of Johnson & Johnson that develops innovation centers, is opening its first JLAB in New York City, the governor announced in his State of the State address on Monday.
Occupying 30,000 square feet on the third floor of 101 Avenue of the Americas in Soho come 2018, JLABS @ NYC will be an incubator for 30 biotech, pharmaceutical, medical device and consumer health companies. The initiative, which will provide state-of-the-art laboratory space, equipment and technology to spur research and innovation in the life sciences, is in collaboration with New York Genome Center (NYGC). The deal involves a sublease with NYGC, a spokeswoman for the nonprofit biomedical center told Commercial Observer. She didn’t respond with the terms of the deal, and nor did a spokeswoman for J&J Innovation, which has similar innovation partnerships throughout the world.
In 2012, NYGC signed a 20-year, 170,000-square-foot lease spanning the first seven stories of the 23-story, 435,000-square-foot building owned by Edward J. Minskoff Equities, company head Edward J. Minskoff said. Asking rents in the building today range from $78 to $86 per square foot, according to Jeffrey Sussman, an executive vice president at Edward J. Minskoff Equities.
“We’re thrilled to hear Johnson & Johnson will be occupying space in the building,” Minskoff, whose company was not involved in the transaction, told CO. “They’re one of the great pharmaceutical companies in the world. It’s wonderful that they are going to collaborate with New York Genome in the research and the discovery of a cure for cancer.”
Minskoff erected the property in 1990. The building is 100 percent occupied, with a waiting list, according to Minskoff. Other tenants include Two Sigma Investments and Blue State Digital, a subsidiary of WPP.
JLABS @ NYC will receive $17 million in New York State funding as part of Gov. Andrew Cuomo‘s $650 million initiative to encourage life science research development in New York State, he announced in his speech at 1 World Trade Center.
“I am excited to announce we are going to invest $650 million to help fuel the new life sciences economy, starting right here in New York City,” Cuomo said. “We are partnering with Johnson & Johnson and the Genome Center to advance cutting edge genetic research that will save lives and create jobs and New York is the place to do it.”
Life science companies aren’t benefitting just from the state, however. Mayor Bill de Blasio announced last month that the city would invest $100 million into a new life sciences campus either on the East Side of Manhattan or Long Island City, Queens. New York City Economic Development Corporation is in the early stages of planning for that development, slated for completion in 2021.