The second phase of a massive South San Francisco development courting research and life sciences tenants is set to break ground.

Kilroy Realty Corp. announced Tuesday that it is set to start construction on Kilroy Oyster Point 2, a $940M project set to feature 860K SF across three buildings.

The project is part of a 50-acre, five-phase, 3M SF megadevelopment that started in 2018, when Kilroy first acquired the waterfront property. The completed first phase has been fully leased by fintech firm Stripe and biopharma firm Cytokinetics.

“As of today, Kilroy has about $2.5B of liquidity, $1.5B in cash, which should fully fund the project,” a Kilroy spokesperson told Bisnow Wednesday.

KOP 2 will feature a fitness center, a conference center, outdoor meeting spaces and a large amphitheater, underscoring the race among life sciences developers to create amenity-laden spaces that can help high-profile tenants attract top talent.

South San Francisco has been a growing destination for life sciences developments, including a recently announced expansion of Alexandria Real Estate Equities' Gateway Campus.

Kilroy, a publicly traded office owner and developer, is based in Los Angeles and also has life sciences projects in San Diego.