$40M Spec Life Sciences Conversion In Mountain View Underscores Sector’s Heat
A joint venture between BioScience Properties and Harrison Street Real Estate Capital LLC recently purchased a 67K SF building at 303 Ravendale Drive in Mountain View for $40.75M in a speculative move for the conversion of the property to life sciences use, according to a press release.
The deal represents the latest example of the life sciences sector’s continued Bay Area boom and how it continues to spread outward from its initial clustering in South San Francisco and San Francisco’s Mission Bay into Silicon Valley and the East Bay.
“There’s more demand for life sciences space in the Bay Area today than options available, especially for tenants in the 10K to 50K SF range,” CBRE Senior Vice President Damon Schor said in a statement. “Speed-to-market is essential within this industry, making 303 Ravendale an attractive option for a life sciences firm looking to expand or optimize its operations.”
The sector’s vigor in the region has led to the lowest lab vacancy rate in the nation at 1.5%, according to a report from CBRE. The report also noted that S.F. has the fastest-growing life sciences job market and has garnered the most venture capital investment for biotech in the nation. As far as total square footage devoted to the sector, the Bay Area is second only to Boston-Cambridge.
The Ravendale Drive property built in 1978 is located about 15 minutes from the Stanford Research Park, positioning it to capture the strong demand for lab space. The joint venture plans to make the labs apt for both biology and chemistry specialties. In keeping with recent life sciences trends, the project will be geared for flexible spaces that can accommodate either a single use or multiple tenants. The project will include backup power and single-pass air for the lab areas in addition to more standard lab features.
The seller, 303 MVRP LLC, was represented by CBRE Capital Market’s team members Erik Doyle and Alec Haley. Leasing will be conducted on behalf of the buyers by CBRE's Damon Schor, Simon Clark, Alex Wilson and Ryan Carr.
“303 Ravendale is ideal for a life science conversion as it combines functional features, like high ceilings, abundant natural light and heavy power, with a strategic location near Stanford Research Park and several well-known incubators,” CBRE Senior Associate Alec Haley said in the statement.