SAN FRANCISCO – April 1, 2022 – CBRE has arranged $124 million in acquisition and conversion financing for 5000 Shoreline, a three-story, 143,383-sq.-ft., Class A office building located on approximately 8.5 waterfront acres in the birthplace of biotechnology, South San Francisco. 5000 Shoreline was delivered vacant, making the property one of the only remaining life sciences conversion opportunities in South San Francisco.
Mike Walker and Brad Zampa with CBRE Capital Markets’ Debt & Structured Finance group arranged the acquisition and conversion financing on behalf of the buyer, DivcoWest. The three-year, non-recourse, floating-rate loan was secured through a European investment bank.
DivcoWest plans to upgrade base building improvements; upgrade the utilities, electrical and mechanical components; and convert the existing structure to a warm shell condition to accommodate life sciences tenancy. Once base building modifications are complete, DivcoWest will complete market-ready upgrades to the interiors to be able to offer prospective tenants turn-key office and laboratory suites.
“The fundamentals in the Bay Area life sciences market are incredibly strong, and this location is central to the top biotech and pharma companies in the region. We are seeing balance sheet banks enter this space with strong conviction, and we had multiple competing to win this assignment. We were thrilled with the outcome and to partner with DivcoWest again on this incredible opportunity,” said Mr. Walker, executive vice president, CBRE.
5000 Shoreline is one of the only remaining life sciences conversion opportunities in South San Francisco, the epicenter of the largest research market in the world. Life sciences continues to be a top-performing sector in the Bay Area market as relentless demand for space outpaces existing supply.
The San Francisco Bay Area life sciences market posted a vacancy rate of 2.0% as of the end of the fourth quarter of 2021, according to CBRE research. At the same time, there are currently 54 tenants in the market for a cumulative 2.6 million sq. ft. of life sciences space across the Bay Area.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.