Montana Avenue Sheds R&D Space in San Diego

reprints


Montana Avenue Capital Partners has unloaded about 90,000 square feet of fully leased research & development and lab space in San Diego.

JLL (JLL)’s Capital Markets team announced Dollinger Properties acquired two adjacent buildings at 16981 Via Tazon and 11501 Rancho Bernardo Road in Rancho Bernardo for $30.8 million. Millennium Health, a medication monitoring and drug testing services company, occupies space at the property.

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JLL’s Bob Prendergast, Lynn LaChapelle, Tim Olson and Greg Moore worked on behalf of the seller and procured the buyer.

“The Rancho Bernardo submarket continues to be an attractive investment destination,” Prendergast said in a statement. “This offering presented the investor the opportunity to secure a property with a committed tenant who has invested significant capital into its lab and office space. The assets are proximate to major highways and are integrated in the greater I-15 Technology Corridor.”

As the nation’s third-largest hub for life sciences real estate, San Diego is home to 16 percent of all development projects underway in the United States, according to a report from CommercialEdge. San Diego is set to see 3.6 million square feet of space added just this year, which is almost double the amount completed between 2019 and 2023.

News of Montana Avenue’s sale follows shortly after Breakthrough Properties announced a landmark 230,000-square-foot pre-lease with Pfizer at the Torrey View development. Last week, JLL announced a 20,000-square-foot lease for AnaBios in Downtown San Diego. Also, Eli Lilly and Company is expanding in San Diego and opening a new 62,000-square-foot lab this year at University Town Center.

“The market demand for R&D and lab properties in San Diego remains robust, driven by the region’s thriving technology and life sciences sectors,” LaChapelle said. 

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