Adverum Biotechnologies, formerly Avalanche Biotechnologies, is making a move to Redwood City from its current home at 1035 O’Brien Dr. in Menlo Park. The clinical-stage gene therapy company has signed a deal to occupy just over 80,000 square feet in two buildings located at 800 and 900 Saginaw Drive in Redwood City, where it will make its new headquarters.
The deal was first reported by CoStar.
The two buildings are part of a 15-building life science and office campus owned by HCP, a S&P 500 company that focuses on investments in real estate serving the healthcare industry throughout the United States. HCP has owned the campus since July of 2005.
Adverum was formed after the merger of Avalanche Biotechnologies and Annapurna Therapeutics in May 2016, according to the company’s page on Crunchbase. The company focuses in discovering and developing medicines that can offer therapeutic benefit to patients dealing with chronic or debilitating disease.
The company has raised raised over $70 million to date, according to Crunchbase, with no public information about its revenues. The new headquarters will be in good company for a budding life science enterprise. Some of its neighbors in other buildings at the campus include Abbott Vascular Device, Atreca, CardioDX and Revolution Medicines, to name a few.
The property is about 2.5 miles away from Redwood City’s downtown core and right off of US Highway 101, adjacent to the Redwood Creek, which leads into the San Francisco Bay.
The Redwood City life science submarket is not large, but it has been growing as life science space in San Francisco’s Mission Bay and South San Francisco has been drying up. Some notable transactions of the first quarter of 2018, according to a Kidder Mathews industry report, include Allakos taking just over 25,000 square feet at 975 Island Drive in Redwood City, and Impossible Foods renewing its 15,000 square foot lease at 525 Chesapeake Drive.
Yet, all of the development activity is primarily concentrated in South San Francisco. Approximately 1.75 million square feet of life science product is under construction there, according to the Kidder Mathews report. Phase three of HCP’s The Cove at Oyster Point Boulevard will deliver 335,670 square feet in two buildings and is drawing strong competitive interest among life science companies. The Genesis North Tower is scheduled to be completed in the third quarter of this year, delivering 400,000 square feet. In addition, Tarlton Properties announced the expansion of its Menlo Park Lab campus, with plans to add 260,000 square feet of lab space by 2020. Vacancy dropped to 3.62 percent for this product across the region, with asking rates ranging from $3.50 to $5.25 per square foot NNN.