Healthpeak to Build $393M Bay Area Campus

Vantage. Rendering courtesy of Healthpeak Properties

Healthpeak Properties has announced a new, $393 million project in South San Francisco, Calif., named Vantage. Construction on the first phase is slated to begin this quarter, with completion anticipated for 2023’s second half. Flad Architects has been tapped for the project.

Life science development in the San Francisco Peninsula market continues to make up a significant portion of office activity. In South San Francisco alone, more than 2.6 million square feet of new life science office space was under construction as of September, CommercialEdge data shows.

Healthpeak’s upcoming Vantage development will see the addition of roughly 343,000 square feet in its first phase. According to the company’s third-quarter report, Healthpeak aims to pursue entitlements for more construction, eventually growing the campus to offer 1 million square feet.

Described as build-to-suit, Vantage will comprise two buildings—of five and six stories—at 494 Forbes Blvd. A mix of laboratory and office space will be offered, with floorplans averaging 31,666 square feet. Tenants will also have access to a three-level parking structure (at 2.6 spaces per 1,000 square feet) and a 30,000-square-foot amenity center. Outdoor meeting spaces, bocce ball courts and a food truck plaza are also planned.

Vantage is designed to meet LEED Silver certification standards. Its location provides tenants with access to downtown South San Francisco’s amenities, as well as the nearby Caltrain station—which will see the addition of a new center boarding platform connecting to a pedestrian underpass.

Plenty of room to grow

Vantage. Rendering courtesy of Healthpeak Properties

Healthpeak first acted on its plans to expand in South San Francisco a year ago. In October 2020, the company completed a $128 million off-market transaction for roughly 12 acres adjacent to its existing Forbes Boulevard site, according to a company report from last year.

In a more recent investor presentation, the developer stated it has access to approximately 170 acres of land in South San Francisco, including currently active developments such as Vantage, as well as potential future densification of existing stock. Over the next decade, the REIT aims to double its life science holdings in the city. According to CommercialEdge, Healthpeak owns more than 5.6 million square feet across metro San Francisco.

Demand for life science assets soared this year, with the global health crisis contributing to the already high-growth sector. Last year, roughly $70 billion in private and public capital was invested in life sciences companies, a Cushman & Wakefield report found.

About 3 miles to the north of Vantage, the REIT is expanding its Shore at Sierra Point property, a five-building, 629,000-square-foot life science asset in the Brisbane submarket, which was recently brought to full occupancy. Interline Therapeutics Inc. agreed to occupy the final 36,000 square feet. Last year, Janssen BioPharma Inc., a subsidiary of Johnson & Johnson, agreed to occupy 60 percent of the space.

Several other massive life science projects are underway in the market. In June, Kilroy Realty announced the groundbreaking of its $940 million Oyster Point development, situated on 50 acres less than 2 miles north of Healthpeak’s campus, while at 700 – 1000 Gateway Blvd., BioMed Realty is constructing the 2.2 million-square-foot Gateway of Pacific.