Healthpeak Buys South San Francisco Lab Campus For $600M As Part Of Larger Buying Spree

Healthpeak Properties completed the purchase of the Gateway Boulevard healthcare campus in South San Francisco for $600M, part of a run of transaction activity totaling $925M, according to Healthpeak CEO Scott Brinker.

Aerial shot of Oyster Point in South San Francisco
Oyster Point In South San Francisco

The Denver-based healthcare REIT said the moves align with the capital allocation strategy it outlined on its October earnings call, as demand for outpatient medical real estate remains strong and competition for well-located life sciences assets continues to reshape investment priorities.

The 1.4M SF campus spanning 29 acres along Gateway Boulevard is about 60% leased and includes a 15K SF amenity building. The acquisition expands Healthpeak’s footprint in South San Francisco, where it now controls approximately 6.5M SF across 210 acres, strengthening its position in one of the country’s most established biotechnology clusters.

Healthpeak sold roughly $325M of outpatient medical assets totaling about 834K SF in the final quarter of 2025. The REIT also said it is in various stages of negotiation on additional outpatient medical sales, recapitalizations and loan repayments that could generate another $700M or more in proceeds.

Vacancy in the Northern Peninsula life sciences market, which includes South San Francisco, hit 39.8% at the close of Q3 2025 and a net absorption of negative 26K SF. This was out of a total 194K SF negative net absorption for the entire Bay Area, according to CBRE.

Active tenant requirements pointed to an optimistic outlook for leasing activity looking forward, with a 73% increase in requirements across the Bay Area compared to the previous quarter and a 62% increase year-over-year.

Healthpeak announced a plan last week to spin off its senior housing portfolio into a new publicly traded REIT. Janus Living will be backed by 34 senior housing communities and is set to launch sometime in the first half of the year. Brinker will also lead Janus Living, which would be set up under a legal framework that allows REITs to partner directly with property operators.

Healthpeak has been selling off assets to raise funds and plans to use proceeds from the Janus Living IPO to pay for pending acquisitions, pay down debt and fund general corporate operations.

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