LPC West, Angelo Gordon Acquire 63K-SF Life Sciences Conversion in Carlsbad
LPC West, the West Coast affiliate for Lincoln Property Company, and investment firm Angelo Gordon have purchased a 63,000-square-foot industrial building in Carlsbad, Calif., which the joint venture plans to reposition for life sciences use.
The $19 million acquisition of 1695 Faraday Avenue marks the second life sciences investment between the two firms in the past six months after the purchase of 2065 Thibodo Road in Vista, Calif., also in the San Diego-area life sciences sector.
“The life sciences manufacturing sector continues to experience robust demand from both tenants and investors,” Benjamin Bucci, senior vice president of LPC West’s San Diego region, said in a statement. “The LPC and Angelo Gordon partnership will continue to seek out opportunities to expand the life science manufacturing strategy.”
The building was previously owned by SMAC Corporation, a moving coil actuator manufacturer, which originally constructed the building around 2000, city property records indicate. It’s unclear if SMAC is the seller.
Jake Rubendall, Chris Roth and Rusty Williams of Lee & Associates brokered the deal alongside Dennis Visser and Weston Yahn of Cushman & Wakefield. The brokers did not immediately respond to a request for comment.
“Many of these commercial life science companies are turning to local contract manufacturing organizations (CMOs) to help get the job done and minimize supply chain disruptions,” Visser said in a statement. “This is the demand opportunity that LPC West and Angelo Gordon is targeting with the planned cGMP manufacturing facility conversion at 1695 Faraday Ave, Carlsbad and elsewhere in their San Diego cGMP portfolio.”
HelloThe joint venture aims to tap into the life science sector in Carlsbad in particular for the high amount of activity from companies in the area, namely Thermo Fisher Scientific, Medtronic and Beckman Coulter.
And demand for space for life science industries has become particularly tight as of late, with San Diego currently having less than 200,000 square feet of vacant lab space available in the first quarter of 2022, according to a report from JLL.
Lab space saw demand grow to historic levels for the third year in a row, per the report, with 32 tenants signing for 1.8 million square feet, a 24 percent increase from the previous quarter and a 120 percent increase year over year, Commercial Observer reported. The first quarter of 2022 saw an increase of 235 percent over the last five years.
Mark Hallum can be reached at firstname.lastname@example.org.