Los Angeles-based Kilroy Realty Corp. has completed the acquisition of a life science development site in South San Francisco, the West Coast’s leading life science market, for approximately $308 million. The site is fully entitled for 2.5 million square feet.
KRC said it plans to develop, over multiple phases, a state-of-the-art laboratory and office complex that will eventually encompass 11 buildings spread across a nearly 40-acre waterfront site.
Situated at the intersection of Oyster Point and Marina Boulevards along the preferred northern corridor of South San Francisco, the site is immediately adjacent to the company’s existing three building Oyster Point Tech Center. On a combined basis, the overall project will have a meaningful footprint in South San Francisco’s large and rapidly growing life science community, home to more than 200 biotech companies, including such legendary companies as Genentech and Amgen. Market fundamentals reflect the growing attraction of South San Francisco’s life science community, with the region’s Class A office and laboratory space vacancy rate at less than 3%.
In recent years, the region’s commercial biotech market has expanded to more than 12 million square feet of office and laboratory space across more than 500 acres, accommodating a range of entrepreneurial start-ups and established companies. The region pulls talent from several world-class universities, including UC San Francisco, UC Berkeley and Stanford University. It is also well-connected by multiple public transportation options to nearby residential communities such as Mission Bay, and to the nexus of technology innovation and venture capital funding found in both the Silicon Valley and San Francisco.
“We’re excited to partner with Kilroy Realty on this important new project,” said Mike Futrell, City Manager of South San Francisco. “Given its strong track record in creating modern work environments, we believe Kilroy has both the vision and the experience to develop this expansive waterfront site into a world-class center for life science innovation.”
“Kilroy Oyster Point is a significant opportunity to expand our West Coast life science platform in a prudent and disciplined manner,” said John Kilroy, KRC’s Chairman and Chief Executive Officer. “It offers all the advantages we look for in new development—a strong location in a world-class market serving a dynamic industry with all the services and amenities required to attract today’s young, urban innovative workforce.”