Last year, DivcoWest paid $164.5 million for a 140,000-square-foot former office building in South San Francisco, paying off with a significant life sciences lease.
South San Francisco-based Ideaya Biosciences is moving its headquarters across town to a 44,000-square-foot redevelopment of its lab at 5000 Shoreline Court, San Francisco Business Times reports.
The eight-year-old precision medicine startup is expected to relocate next year from its 30,000-square-foot center at 7000 Shoreline, less than a block away, according to regulatory filings. The company focuses on cancer treatment.
It has an initial lease term of 2034. Base rent is $3.7 million per year, which equates to just under $7 per square foot per month. That’s below the region’s average of $7.67 per foot, according to CBRE.
Market vacancy rates jumped from 4.7% in the first quarter of 2022 to 9.8% this year, reflecting a slowdown in leasing activity.
Ideaya Biosciences is the first tenant at 5000 Shoreline, a spokesman for DivcoWest told The Business Times.
January 2022, San Francisco-based developer Bought a three-story vacant office building And plans to turn it into a life science complex, which was a hot market at the time.
The 8.6-acre waterfront property is one of the few in South San Francisco that is suitable for conversion into research suites and laboratories. The renovation is designed to attract life science, biotech or pharmaceutical companies to the property.
The developer now plans to complete three speculative suites of 10,000, 13,000 and 20,000 square feet by early next year.
DivcoWest is a private, multidisciplinary investment firm headquartered in San Francisco’s East Side with seven offices across the country, including Cambridge, New York, Los Angeles, Menlo Park, Austin and Washington, D.C.
Founded in 1993, the company focuses on technology and life sciences and has 19 million square feet and $17.7 billion in assets According to its website, it is under administration.
In April, DivcoWest considered whether to renovate a historic office building in downtown San Francisco Entering an apartment, shared housing unit or hotel.
— Dana Bartholomew
