King Street Buys San Diego Life Science Campus for $120M
The transaction also involved a seller carry-back loan.
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King Street Properties has purchased The Esplanade, a 241,963-square-foot life science campus in San Diego. Alexandria Real Estate Equities sold the asset for $120 million, according to public records. The transaction also involved a $166 million seller carry-back loan.
In a deal arranged by Newmark, Alexandria sold the buildings at 4755 Nexus Center Drive, 4757 Nexus Center Drive and 4796 Executive Drive. The agreement also encompasses the sale of a fourth building, which is scheduled to be finalized in late 2025.
Situated in San Diego’s University Town Center submarket, The Esplanade is adjacent to Interstate 805 and some 13 miles north of downtown San Diego.
The new owner intends to enhance the campus by adding shared amenities, upgrading the current lab infrastructure and expanding the available lab space. Planned common-area amenities include a conference room, a fitness center and improved outdoor gathering areas.
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The three facilities were built between 1991 and 2006. Back in 1998, Alexandria purchased the 54,540-square-foot 4757 Nexus Center for $16.2 million from Matrix Pharmaceutical, according to CommercialEdge data. In 2011, the company acquired from Arden Realty the 45,000-square-foot 4755 Nexus Center for $7.4 million, according to the same source. Afterward, the two properties were merged and rebranded as Esplanade – 4755 & 4757 Nexus Center Drive.
The Newmark team included Executive Managing Directors Brunson Howard, Rick Reeder and Brad Tecca, Co-Head of U.S. Capital Markets Kevin Shannon and Associate Tanner Harris.
Back in September, King Street Properties completed the first building at The Landing in Burlingame, Calif. At seven stories, the 300,000-square-foot structure at 1699 Bayshore will anchor the 4.5-acre campus. The second building, 1701 Bayshore, is currently under construction. It will be six stories tall and measure 203,500 square feet.
San Diego’s life science sector
Due to a reduction in venture capital investments and an influx of new office spaces entering the market, the life science sector—which had previously driven office development in the years following the pandemic—is now facing an oversupply issue.
Between 2021 and 2023, more than 30 million square feet of lab space commenced construction. However, only 948,000 square feet of new lab space broke ground in 2024, according to a recent CommercialEdge report.
San Diego’s office sector still attracts investment; the metro recorded $651 million in sales through the end of November. Development activity remained strong with around 3.1 million of square feet underway, while the vacancy rate clocked in at 20.5 percent, up 280 basis points over a 12-month period.
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