Longfellow Launches $315M Life Sciences Conversion in San Diego
PS Business Parks sold the nine-building office property
UPDATE: In a landmark deal, Longfellow Real Estate has agreed to pay $315.4 million for a 371,281-square-foot office portfolio, which it intends to convert into a life sciences campus in San Diego — one of the leading life sciences markets in the nation.
PS Business Parks sold the nine-building property that spans 20.56 acres along Lusk Boulevard and Barnes Canyon Road in the Sorrento Mesa submarket, according to JLL (JLL), which announced the deal and represented the seller.
“Lusk Innovation Portfolio will support Longfellow’s development of the thriving Sorrento Mesa submarket and San Diego’s world-renowned life science industry, meeting the demand for top-quality lab space in the region,” Nick Frasco, managing director at Longfellow, said in a statement send to Commercial Observer. “The development will create up to 2 million square feet of state-of-the-art Class A lab space that will integrate with our surrounding properties and provide our tenants with an amenity-rich destination life science campus within a complete innovation ecosystem.”
The seller did not return requests for comment.
All nine properties are two-story buildings that are zoned for office, light industrial and other commercial uses, including life sciences. According to JLL, the portfolio is surrounded by other top life sciences corporate headquarters and technology companies.
San Diego doesn’t have as expansive a life sciences market as found in the Boston and San Francisco areas but it did post a strong 4.9 vacancy rate halfway through the year.
Boston-based Longfellow is already a national leader in the life sciences industry. Earlier this year, the firm secured $178 million to buy San Mateo Bay Center and start a life sciences conversion project.
The JLL team representing the seller included Lynn LaChapelle and Bob Prendergast, Sach Kirpalani and Michael Leggett.
Gregory Cornfield can be reached at firstname.lastname@example.org.
Update: This story now includes comments from the buyer.