Just prior to the start of construction, Healthpeak Properties’ new Sorrento Gateway development has been fully leased to Sorrento Therapeutics, according to an SEC filing. The approximately 163,000 square-foot development project is set to begin build-out within the third quarter of the year, with Sorrento Therapeutics to occupy the space in 2023.
Sorrento Therapeutics, a California-based research and manufacturing company, recently signed a lease for approximately $5.10 per square foot at the development, which will soon be constructed at 4930 Directors Place in San Diego. The lease will have an initial 188-month term, subject to annual increases. The newly signed tenant is a manufacturing and research company. Founded in 2009, Sorrento Therapeutics develops and commercializes cancer fighting technologies.
Located in the Sorrento Mesa submarket of San Diego, the development will reach five stories and include lab space with flexible and efficient floor plates, and access to fitness and dining amenities, according to a news release.
The property is adjacent to Healthpeak’s fully-leased Sorrento Gateway Campus, a commercial park which consists of three buildings totaling 196,000 square feet. Other neighboring tenants include Amazon, Lily Biotech, Qualcomm and NuVasive. The soon-to-be constructed building is also in close proximity to Interstate-805, providing access to the rest of San Diego.
“Strong market fundamentals and tenant relationships give us confidence to commence our next development in San Diego. This project will allow us to meet the demand we are seeing from both existing and new tenants,” said Scott Brinker, President and Chief Investment Officer, in the news release.
The Sorrento Gateway project will be Healthpeak’s third ground-up development in San Diego since the beginning of 2020. Previously, the company pre-leased both the 250,000 square-foot Boardwalk and 165,000 square-foot Callan Ridge campuses in the Torrey Pines submarket.
In general, the San Diego life sciences market has seen significant growth in the last year. According to a recent report from Good and Roberts, a general contractor and developer in San Diego’s life sciences market, San Diego accounts for 72 percent of all lab construction throughout Southern California. Throughout Southern California more than 300,000 people are employed across 34,000 research facilities, universities and companies in the life sciences sector.
Healthpeak Properties, Inc. is a real estate investment trust with a focus on life science, medical office and retirement community properties. The company was founded more than 35 years ago, and now has over $20 billion in owned real estate, according to its website. As well as San Diego, Healthpeak owns real estate throughout the U.S., including in San Francisco, Seattle, Tampa, Boston, Nashville, Denver, Houston and Orlando, among many others.