PCCP JV Leases 240 KSF at Bay Area Campus

135 N. McCarthy Blvd. Photo by Caitlin Luebbe – Embarcadero Capital Partners

Global medical technology company Becton, Dickinson & Co. has agreed to occupy more than half the space of a repositioned Silicon Valley campus. Its BD Biosciences unit leased 240,000 square feet at Park Point in Milpitas, Calif.—owned by a joint venture of Embarcadero Capital Partners and PCCP.

Hudson Pacific Properties sold the three-building office/R&D campus in 2019 for $70.3 million, CommercialEdge data shows.

A Newmark team represented the joint venture owner in the leasing negotiations, while JLL worked on behalf of the tenant. The announcement comes on the heels of another expansion by BD, in which the company grew its presence in Phoenix to 153,000 square feet.

Park Point comprises 472,000 square feet across its two- and three-story buildings. BD Biosciences will occupy the entire building at 155 N. McCarthy Blvd. and approximately half of the space at 135 N. McCarthy Blvd. Last year, tech manufacturer Corsair leased the third building totaling 117,832 square feet at 115 N. McCarthy Blvd. Currently, Park Point is roughly 77.4 percent occupied, with about 107,000 square feet still available.

The 30-acre property sits just near the intersection of Highway 237 and Interstate 880, providing access to the East and South Bay regions. The joint venture owner hired global design and architecture firm HOK to upgrade Park Point. This included the addition of new features, constructing a 6,000-square-foot gym, renovations to two lobbies, new EV charging stations and extensive landscaping. Upgrades also included the addition of bike storage, outdoor meeting space, kitchen and picnic areas, as well as basketball and pickleball courts.

Positive Signs for Bay Area Office Market

So far this year, the deal marks one of the largest leases in the Bay Area, including the East and South Bay. Tech and life science companies helped the market outperform the Peninsula region during the first quarter this year. As of March, office vacancy in the Bay Area reached 16.0 percent, down 320 basis points year-over-year, while the San Francisco-Peninsula market recorded a 17.4 percent vacancy rate, CommercialEdge data shows.

The life science sector is also strong across the Bay. Earlier this month, cancer treatment specialist InterVenn agreed to occupy the entire building at Aralon Properties’ 499 Forbes Blvd. in South San Francisco, committing to 142,000 square feet.

Another recent deal was the $75 million financing package obtained by Four Corners Properties for the redevelopment of Shoreway Innovation Center in Belmont, Calif. The project is set to include between 500,000 and 600,000 square feet upon completion.