San Diego Life Sciences Campus Secures $165M Refi

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Genesis Science Center, a four-building life sciences campus in San Diego’s Sorrento Mesa market, has secured a $165 million refinancing.

Phase 3 Real Estate Partners and Bain Capital are the borrowers for the 252,000-square-foot research and development campus. JLL announced the three-year loan but did not disclose the name of the lender. However, records show Capital One provided the financing for the fully leased, 13-acre property at 5510, 5550, 5580 and 5590 Morehouse Drive.

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The campus is home to life sciences and biotech firms, and it features an outdoor eatery, a fitness center and a conference center. JLL’s Tim Wright, Todd Sugimoto and Daniel Pinkus represented the borrowers.

“San Diego continues to cement itself as a top three life sciences market in the U.S. with Sorrento Mesa as the leading local submarket,” Wright said.

Class A asking rates in Sorrento Mesa have tripled since 2014 and increased to an average of $6.50 for triple-net leases, according to a JLL market report from earlier this year. Biotech firm Encodia just signed a lease with Sterling Bay for 65,800 square feet in the Sorrento Mesa area. And, at the end of 2021, Harrison Street and Sterling Bay acquired five life sciences properties and a 13-acre development site in Sorrento Mesa. The two firms also plan to develop more than 1 million square feet of new lab space in the submarket.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.