Genesis Science Center
Significant advances in life science technology and the aging U.S. population, coupled with the externalization of pharmaceutical research and development, have increased the demand for specialized space in key U.S. knowledge clusters. Life science modalities have multiplied over the past decade in an effort to develop bespoke therapies to help humans live longer, healthier lives. As such, innovative and flexible laboratory space plays a critical role in the development of these therapeutics. Since identifying this secular theme in 2013, Bain Capital Real Estate established a vertically integrated life science real estate platform, now branded “Genesis”, with our partner, Phase 3 Real Estate Partners. Our disciplined and differentiated approach in the life science sector focuses on the essential knowledge clusters, targeting high growth and established research and development companies and uses proprietary flexible laboratory technology to deliver Class A ready-to-occupy space.
Genesis Science Center is a Class A life science campus located in the rapidly growing Sorrento Mesa life science cluster. Sorrento Mesa is one of the largest life science submarket in San Diego and has been a leading submarket for life science real estate. To create a differentiated campus-like environment in the center of the cluster, Bain Capital Real Estate and Phase 3 Real Estate sourced and assembled five parcels (four existing office buildings and one entitled development site) from two different sellers off-market, resulting in a significantly reduced basis relative to competing life science product in the submarket. Following the acquisition, the team negotiated early lease terminations with two of the existing office tenants which allowed us to access space for conversion to laboratories ahead of initial underwriting. Additionally, we designed a convenience-driven amenity collection, including a food truck program, staffed shipping and receiving, on-site property management, on-site fitness center and shared training / conference rooms. The renovations and conversion of the campus began in Q3 2019 and the project was fully stabilized in Q2 2022 at well-above underwritten rents. Although not contemplated in the initial business plan, the team has the option to develop the 4-acre development site should market conditions prove favorable.