Genesis Science Center
Strategy overview
Significant advances in life science technology, an aging US population, and the externalization of pharmaceutical research and development have coalesced, increasing the demand for specialized space in key US knowledge clusters. Life science modalities have multiplied over the past decade-plus in an effort to develop bespoke therapies to help humans live longer, healthier lives, and innovative, flexible laboratory space plays a critical role in the development of these therapeutics.
Since identifying this secular theme in 2013, the Real Estate team 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 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.
Explore Genesis Science Center
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, California and has been a leading submarkets for life science real estate nationally.
To create a differentiated campus-like environment in the center of the cluster, the Real Estate team and Phase 3 Real Estate Partners sourced and assembled five parcels (four existing office buildings and one entitled development site) from two different sellers via off-market transactions, 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, an 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 above underwritten rents. Although not contemplated in the initial business plan, there is potential to develop the four-acre development site should market conditions prove favorable.
