HATCHspaces, NexCore, Nuveen to Develop R&D Facility in West LA

5005 McConnell Ave. Photo by Jonathan Ramirez – Archlenz Photography

HATCHspaces, a Los Angeles-based life sciences real estate platform, has partnered once again with NexCore Group and Nuveen Real Estate for the development of a new R&D facility in West Los Angeles. The venture has acquired an industrial property, which will be redeveloped for Armata Pharmaceuticals.

Armata Pharmaceuticals first announced it entered a build-to-suit lease agreement for its new space in November last year. The developer venture will redevelop the existing building as a cGMP critical manufacturing facility—Armata specializes on treatments for antibiotic-resistant and difficult to treat bacterial infections.

READ ALSO: E-commerce Powers the Rise of Multistory Industrial Projects

According to CommercialEdge data, the building at 5005 McConnell Ave. was previously owned by Montana Avenue Capital Partners. Armata is currently headquartered on Glencoe Avenue, less than two miles west from its future location on McConnell. The 56,300-square-foot facility was originally constructed in 1969.

In the initial lease announcement, Armata CEO Brian Varnum said that the new facility “is essential for our novel product form given the scarcity of phage-specific manufacturing capacity. Building out multiple manufacturing lines also positions us to evaluate potential strategic partnerships and collaborations.”

Robust demand for the sector

This represents the fifth such asset that HATCHspaces and NexCore have worked on. Last year, the partnership announced another life science project in Los Angeles: a 100,000-square-foot development also in West Los Angeles. Similarly, Nuveen and NexCore also expanded their venture in the sector—notably, last year’s $620 million portfolio acquisition from IRA Capital, targeting life sciences and medical office properties across 11 states.

“Significant companies in the industry have invested in Southern California. They have trained a skilled workforce and are now investing in the core infrastructure to continue growing the industry,” noted HATCHspaces co-founder Allan Glass in a prepared statement.

Life sciences development is estimated to grow at a strong pace this year, according to CBRE. Los Angeles is numbered among several markets that are faced with strong demand and have seen new developers commit to its growth. Among these, Oxford Properties announced in September its debut in Los Angeles—a $133.5 million acquisition in Santa Clarita, where it plans to develop a new campus.