Four Corners Properties Receives $75MM Financing for Life Sciences Redevelopment at Seven-Acre Site in Belmont
SAN FRANCISCO – May 18, 2022 via The Registry– CBRE arranged $75 million in financing for the acquisition and redevelopment of Shoreway Innovation Center in Belmont, Calif. CBRE Debt & Structured Finance represented the borrower, Four Corners Properties, a San Francisco Bay Area real estate investment and operating company and their institutional equity partner on the financing. The seven-acre property will be redeveloped into a new life sciences campus, centrally located in the growing life sciences hub on the San Francisco Peninsula.
Mike Walker and Brad Zampa with CBRE Capital Markets’ Debt & Structured Finance group arranged and secured a three-year, non-recourse, floating rate loan with two extension options through a private equity
Four Corners Properties will use the financing to fund a portion of the predevelopment costs for 1301 Shoreway Road, acquired in December 2021 for $90.25 million. The future redevelopment will likely include construction of two Class A Life Science buildings, representing approximately 500,000-600,000 aggregate sq. ft. The new construction will also include a multi-story parking structure to provide approximately 1,500 parking stalls.
“We are thrilled with the outcome of the Shoreway Innovation Center predevelopment financing. The state-of-the-art life sciences campus Four Corners is planning will meet a critical need in the market for high quality facilities as we continue to see low vacancies and high rents on the San Francisco Peninsula,” said Mike Walker, Executive Vice President, CBRE. “Its proximity to leading biotech and pharma companies, Silicon Valley investors and research institutions makes it ideal for recruiting highly skilled talent.”
Nationally, the life sciences sector saw one of the strongest years of occupancy growth on record in 2021, which continued into the first quarter of 2022. Shoreway Innovation Center is located along the US 101 corridor, which has one of the highest concentrations of life sciences facilities in the U.S., due in part to its location near top medical and biotechnology programs including Stanford University and University of California, San Francisco.
Growing demand in the Bay Area life sciences sector is fueling new construction and the conversion of office space and R&D buildings in the region, according to CBRE research. At the end of the first quarter in 2022, life sciences facilities inventory reached 38.4 million sq. ft in the Bay Area, with much of the 334,562 sq. ft. of new life sciences space preleased at the close of the quarter. The San Francisco Peninsula had the lowest vacancy rate in the region at 3.6 percent and the highest average Class A rent at $7.50 per sq. ft. With 6.8 million sq. ft of active and pending tenants in the market in the first quarter, the Bay Area life sciences sector shows no signs of slowdown in the months ahead.