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Presidio Bay Ventures has secured a $118M development loan to build a 150K SF life sciences project in San Carlos dubbed 777 Industrial Road. Presidio Bay secured the funding from a loan originated via Square Mile Capital Management, with financing on the project arranged by Gantry’s Jeff Wilcox, as reported by GlobeSt.
Presidio Bay acquired the property in December 2020, as part of a joint venture with Kinship Capital. Presidio initially planned to redevelop the site into a 123K SF, Class-A life sciences development, but it has upped the scope of the project following this new wave of funding.
The life sciences asset class has experienced unfettered demand in the Bay Area — and in many other parts of the U.S. — over the past few years, with available space continually at a premium and venture capital funding for the segment at an all-time high.
Square Mile Capital principal Eric Cohen told ConnectCRE he is bullish on the San Carlos submarket.
“The San Carlos submarket is a burgeoning hub of life science activity, and we are bullish on its continued growth," he said. "We continue to seek investment opportunities in the growing Bay Area life science sector with top quality sponsors and we believe Presidio Bay Ventures to be among the best in the region.”
Presidio Bay Ventures Managing Director Cyrus Sanandaji mirrored these sentiments in a press release when the initial purchase was made.
“With 777 Industrial Road, we’re proud to continue expanding our investments in the life sciences sector and join its burgeoning community in San Carlos. As our first investment in San Carlos, we look forward to building a longstanding relationship with the City’s planning and building departments as well as the broader community,” he said.
Life sciences giant Alexandria Real Estate Equities is also betting on San Carlos. It has been bringing major companies in the biotech and pharmaceutical spaces to The District, a multibuilding life sciences campus it is developing in San Carlos.
Presidio Bay’s site currently contains a 45K SF car dealership and parking lot, which will be repurposed as part of the development’s expansion, keeping some of the existing infrastructure of the site. Design for the building will be handled by Stanton Architecture and DES Architects & Engineers. Cushman & Wakefield will handle tenant leasing.
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