Plans for a new life sciences campus through the acquisition and redevelopment of the Shoreway Innovation Center in Belmont are underway following a serious financial commitment from real estate firm CBRE Group.
CBRE announced Wednesday that it has arranged $75 million in financing for the acquisition and redevelopment of the Shoreway Innovation Center for the borrower, Four Corners Properties, a San Francisco Bay Area real estate company. According to CBRE, the 7-acre property at 1301 Shoreway Road will be redeveloped into a new life sciences campus, likely including the construction of two Class A life sciences buildings, approximately 500,000 to 600,000 feet. squares altogether. It will include a multi-storey parking structure for approximately 1,500 spaces.
Four Corners Properties will use the financing to finance a portion of the pre-development costs of the Shoreway Road project, acquired for $90.25 million in December. The site currently has a four-story office building estimated at 150,000 square feet, with businesses including Redwood Shores Health Center and software company Bina Technologies Inc. The building is on the east side of the Highway 101 near Redwood Shores, fairly close to South San Francisco. and Silicon Valley. The Shoreway Road CBRE said it arranged and secured a three-year variable rate loan with two extension options through a private equity firm. A variable rate loan changes rates based on the economic outlook and other circumstances.
“We are delighted with the outcome of the Shoreway Innovation Centre’s pre-development funding. The state-of-the-art life sciences campus that Four Corners plans to meet a critical market need for high-quality facilities as we continue to see low vacancy rates and high rents on the San Francisco Peninsula,” said Mike Walker, director of CBRE. vice president, said in a press release.
Dino Perazzo, vice president of CBRE’s life sciences team, said the property has the potential to do well over the long term due to its excellent location between Palo Alto and south San Francisco and its proximity to other areas of life sciences such as San Carlos. It is also close to top medical and biotechnology programs, including Stanford University and the University of California, San Francisco.
Perazzo noted that demand remains high for life science goods and is fueling more research on the peninsula. CBRE said the Peninsula had the lowest vacancy rate in the region at 3.6% and the highest average Class A rent at $7.50 per square foot. San Carlos in January saw plans for a two-structure life sciences campus submitted to the San Carlos planning department, adding to a number of biotech facility developers seeking to build in the East Side innovation district from the city.
A massive new campus has also been proposed in Burlingame on a 12-acre site overlooking the bay, from 1200 to 1340 Bayshore Highway on either side of Easton Creek. Three 11-story buildings would comprise nearly 1.5 million square feet and two 10-story parking structures would provide over 3,500 parking spaces.