The University of Southern California has agreed to pay $57 million for a four-story life sciences building, the last property at the Health Sciences Campus east of Downtown L.A. not owned by the institution.
The 75,272-square-foot property is at 1355 San Pablo Street, directly adjacent to USC Norris Hospital. It was sold by Doheny Eye Institute. Newmark announced the deal and represented the seller with Corion Properties. CBRE represented USC.
The building was constructed in 1976 as a build-to-suit for the Doheny Eye Institute, and it was available for sale for the first time since its delivery. The building features approximately 14,071 square feet of specialized lab space, and it served as the life sciences headquarters for Doheny for the last 45 years.
“Ownership of the building, which was the last remaining asset on campus that was not owned by USC, now provides USC with multiple options on repositioning or redevelopment as part of their long-term strategic plan for the campus,” Corion’s Fred Cordova said in a statement.
Newmark’s Kevin Shannon said the deal reflects the “growing conviction by capital in Los Angeles as a vibrant life sciences market.” Life sciences continues to be one of real estate’s most desirable product types during the pandemic. ife sciences companies in L.A. raised $1.7 billion in financing last year, the most in any county in California, and the sector is projected to continue growing locally. Newmark also reports property owners and tenants are converting existing properties for a life sciences use due to lack of available land for ground-up development.
Meanwhile, Doheny is moving to a 115,000-square-foot building at 150 Orange Grove Boulevard in Pasadena, and should complete the relocation by the end of this year.
Along with Shannon and Cordova, Newmark’s Rob Hannan, Ken White and Laura Stumm worked on the deal with Corion’s Al Grazioli and JoAnn Horeni.