By Meghan Hall
The life sciences sector has exploded in San Francisco, and with constraints on available land, investors are increasingly looking to existing office and industrial assets for life sciences-related development. In a deal that closed in December of 2021, a Boston development firm acquired a San Francisco property for $31 million, allowing it to move forward with plans for a new project.
The asset is located at 1850 Bryant Street, and the deal originally closed on December 9, according to public records. Lighthouse Real Estate Investments LLC acquired the property from an entity affiliated with Align Real Estate.
Align Real Estate had intended to build a 223,000 square foot project at the site. Originally pitched to the City in 2017, the project would have been catered towards philanthropic, community and other social uses. The project would have risen five stories in height with two basements, and would have cost about $61.12 million to construct.
Just before permits were provided, however, the City of San Francisco approved a change in plans, allowing for the construction of 185,135 square feet of laboratory space. Permits for the updated project were formally issued at the beginning of November, according to the San Francisco Planning Department’s website. The project’s overall design will remain the same.
Lighthouse Investments targets U.S. properties that maximize cash flow and create long-term value, according to the company’s website. Its other projects include 188 Octavia Blvd., a 28-unit mixed-use project, and The Fitzgerald, an 87,430 square foot commercial development. Both are located in San Francisco. The company is backed by off-shore capital, and it has committed more than $800 million to U.S. real estate assets since 2017.