From Commercial Property Executive. As reported by Garbiel Frank.
Alloy Properties has completed the redevelopment of Elements, a three-building, 290,000-square-foot life science campus in San Diego’s Sorrento Mesa submarket. The developer, an affiliate of TPG Real Estate Partners, started the conversion of offices to laboratory space after the $104 million purchase of the property in March 2020, according to CommercialEdge information.
In addition to its San Diego moves, Alloy has recently been active in other high-performance markets as well. In June, the firm paid $365 million for a five-building, 425,000-square-foot life science portfolio located in metro Boston.
The brand new Elements
Built in 1986 and located at 10201-10241 Wateridge Circle, the 7.9-acre campus was previously known as The Elements at Waterbridge. Four years prior to its sale, the previous owner completed a $2.5 million capital improvement program at the property that included upgrades to the buildings’ exterior finishes and amenity spaces.
The current conversion to lab space involved mainly 10201 and 10241 Wateridge Circle. McFarlane Architects designed the buildings’ interiors and amenity spaces, while JB Pacific provided contracting services. JLL Executive Managing Director Chad Urie, Senior Managing Director & Market Lead Tim Olson and Managing Director Tony Russell oversee leasing at the campus.
The new spaces have floorplates averaging 20,000 square feet, with 13- to 18-foot ceiling heights. Leases can range from roughly 20,000 to 189,000 square feet, with laboratory suites spanning from 19,462 to 62,294 square feet. Elements’ new amenity package includes outdoor meeting spaces, a new fitness center and electric vehicle charging stations.
Elements is part of one of the highest-performing submarkets of San Diego, which is one of the nation’s largest life science markets by both development pipeline and rentable area, according to data from a CBRE report. The campus’ immediate neighbors include Intertek, Inovio Pharmaceuticals and Telesis Bio. The University of San Diego is 9 miles to the south, while its research hospital is less than 2 miles further east.
Redevelopments, in depth
10201 Wateridge Circle is a five-floor, LEED Silver-certified facility. Redevelopments involved the reconstruction of three office floors to speculative lab and office space totaling 60,215 square feet. The present build-out, delivered in 2022, comprises 44 percent lab space and 56 percent office space, complete with lab support rooms, private offices and conference rooms. The building’s fourth and fifth floors remain open for expansion.
The redevelopments at 10241 Wateridge Circle comprised the entirety of the 85,623-square-foot building. This property is also LEED Silver certified and includes a mix of lab and office space on each of its five floors.
In addition to the existing facilities, Elements allows for the construction of a 170,000-square-foot build-to-suit space and the expansion of the parking garage.
