By Jon Peterson
Solana Beach-based BioScience Properties and Chicago-based Harrison Street Real Estate Partners have purchased the 303 Ravendale Drive asset in Mountain View with plans to complete a life-science conversion of the property. The buyers paid $40.75 million for the building, according to sources familiar with the transaction.
When the property was acquired, it was vacant, which will allow the new owners to deliver a product in so much demand across the region. “We are excited to bring additional life science space to Mountain View. We anticipate tenant demand to be strong and will initially construct laboratory improvements on 30,000 square feet of the 67,000 square foot building,” says Steve Bollert, chief executive office of BioScience Properties.
Harrison Street declined to comment for this story.
The new owners will be investing additional capital into the property in order to get it ready for the conversion. “We anticipate spending between $150 to $180 per square foot on the initial laboratory improvements,” said Bollert.
According to public records, the seller of the property is Palo Alto-based Sand Hill Property Company. Sand Hill had owned the asset since July of 2014, and the developer paid $32.4 million for the asset at that time.
The listing agent on the sale was the Palo Alto office of CBRE. Erik Doyle and Alec Haley ran the sales process with Damon Schor acting as the leasing expert helping out on the sale. Simon Clark, Alex Wilson and Ryan Carr will be representing the new owner to lease up the empty space. CBRE also declined to comment when contacted for this article.
“303 Ravendale is ideal for a life science conversion as it combines functional features, like high ceilings, abundant natural light and heavy power, with a strategic location near Stanford Research Park and several well-known incubators,” said Alec Haley, senior associate, CBRE in a statement.
The property could be designed in such a way to occupy from one to three tenants. The asset sits on 4.15 acres of land, and the size of the property could allow an opportunity in the future to grow the property by an additional 180,000 square feet. An active project application is on file with the city of Mountain View, according to the offering document for the property.
303 Ravendale was first developed in 1976 and was renovated in 2008. There is a perimeter parking facility that has room for a total of 248 spaces. This includes five Charge Point electric vehicle parking locations, which can be expanded. The parking lot also received an upgrade in 2018 with a new sealing coat. The property includes fitness and game rooms with showers and an outdoor amenity area.
The Mountain View lab space market has a total inventory of 877,755 square feet, according to sources that track this information in the Silicon Valley submarket. The total lab availability rate is 8.5 percent, according to some industry reports.
303 Ravendale is part of a joint venture that BioScience and Harrison have used for acquisitions across the greater San Francisco Bay Area. “The project in Mountain View is another example of our growing relationship with Harrison Street as our investment partner. We are excited to work with them on all of our projects in the San Francisco [Bay] Area,” said Bollert.
The San Francisco Bay Area has the second-largest life sciences footprint and the lowest lab vacancy rate in the U.S. at just 1.5 percent, according to CBRE’s 2020 report on the sector. San Francisco is also the fastest growing market for life sciences jobs and the largest recipient of venture capital investment for life sciences in the nation, according to a statement from CBRE.
“There’s more demand for life sciences space in the Bay Area today than options available, especially for tenants in the 10,000 to 50,000-square-foot range. Speed-to-market is essential within this industry, making 303 Ravendale an attractive option for a life sciences firm looking to expand or optimize its operations,” added Damon Schor, senior vice president, CBRE.