In the News: Revolutionizing Bay Area Biotech: Major Finance, Lease Renewals, and New Partnerships Shape the Future
Alexandria Secures CARGO Therapeutics for San Carlos Mega Campus in a Major Lease Deal
Alexandria Real Estate Equities, Inc. has successfully signed a significant lease agreement with CARGO Therapeutics, marking a pivotal moment for both entities. Set to occupy nearly 100,000 square feet at the Alexandria Center® for Life Science – San Carlos in early 2024, CARGO Therapeutics is gearing up to enhance its mission to develop groundbreaking cell therapies for cancer treatment. This move comes on the heels of CARGO's impressive $291 million IPO in November 2023, emphasizing the company's potential in the biotechnology sector.
The Alexandria Center for Life Science – San Carlos, part of Alexandria's renowned mega campus platform, is designed to foster innovation and talent in the life science industry. It offers cutting-edge lab space and a wealth of amenities, including conference facilities, a modern eatery, coffee bar, and fitness center, all aimed at supporting the endeavors of companies like CARGO. Strategically located for excellent connectivity and future expansion, the campus underscores Alexandria's commitment to creating environments that propel life science advancements.
Coherus BioSciences Streamlines Operations with Lease Renewal in Redwood City
Coherus BioSciences, Inc. has strategically adjusted its office presence in Redwood City, California, by renewing its lease for a reduced space, signaling a smart resizing of its operational footprint. The biopharmaceutical company, known for its work in biosimilars and expanding into immuno-oncology, will continue its operations at 333 Twin Dolphin Drive, now occupying 27,532 square feet—a 42% decrease in space. This adjustment, effective until September 30, 2027, reflects Coherus BioSciences' commitment to efficiency and cost-effectiveness, with the reduced space costing around $170,000 monthly.
Despite relinquishing a significant portion of its office space by the end of 2023, the company is positioned to manage its operational costs effectively, with annual rent expected to increase modestly from approximately $1.77 million to $1.88 million over the term. Importantly, Coherus is exempt from covering the costs for existing tenant improvements in the vacated area but will bear specific costs, taxes, and operating expenses for the space it retains.
This move not only emphasizes Coherus BioSciences' adaptive business strategy but also its dedication to remaining within Redwood City's dynamic biopharmaceutical ecosystem. The company views its location on the Peninsula as crucial, offering both proximity to industry peers and the flexibility needed to navigate the competitive healthcare market while continuing its mission to enhance patient access to affordable medicines.
BioMed Realty Secures Over $422 Million in Financing for Gateway of Pacific Campus
BioMed Realty, under the Blackstone umbrella, has successfully secured a $422.2 million refinancing loan for its Gateway of Pacific lab campus in South San Francisco, with JPMorgan, Citi, and Deutsche Bank as the financiers. This move is part of a broader strategy to include the loan in a substantial $1.2 billion commercial mortgage-backed securities (CMBS) pool, which also involves funding for three of BioMed Realty's properties in Boston. The CMBS transaction is expected to conclude shortly.
The Gateway of Pacific, located at 601 Gateway Blvd., is a versatile development project tailored for the evolving needs of the life science sector, promising a mix of amenities like a Class A amenity center, dining options, a health club, and picturesque views. Currently, pharmaceutical titan AbbVie leases 94% of the first phase's 510,000 square feet, with Erasca, a cancer treatment innovator, occupying the remainder.
BioMed Realty, specializing in life science and technology real estate, boasts a significant portfolio across key innovation hubs in the US and UK, highlighting its role as a pivotal player in the industry's infrastructure. This financing deal underscores the strong market confidence in the life science real estate sector, mirrored by a similar $181 million refinancing for Nvidia’s lab campus in Santa Clara by Preylock Holdings, reflecting the sector's dynamism and investment appeal.
SITES SOURCED