Sale of Genesis South San Francisco Portfolio Announced by Bain Capital Real Estate
BOSTON, MA – On October 16, 2020, Bain Capital Real Estate and Phase 3 Real Estate Partners, Inc. disclosed the successful sale of Genesis South San Francisco, a premium life sciences property portfolio. This prestigious asset, located at the gateway of one of the world’s largest life science clusters, has been sold to a publicly traded Real Estate Investment Trust (REIT) for an estimated $1.02 billion.
Portfolio Overview
The Genesis South San Francisco portfolio consists of three Class A buildings, strategically located to provide maximum visibility of the surrounding life science ecosystem. This trophy asset is in close proximity to prominent biotech and pharmaceutical companies such as Genentech, AstraZeneca, Merck, AbbVie, and Amgen. The entire 796,572 square-foot property is fully leased and is highlighted by the tallest multi-tenant life science building in the U.S., which stands 21 stories high. The campus boasts a range of amenities, including:
- Two on-site restaurants
- A fitness center with a yoga and spin studio
- Conference centers
- Multiple showers and locker rooms
- A parking structure accommodating 2,245 vehicles
The tenant roster includes a mix of well-established firms and emerging biotech startups like Fluidigm, Sana Biotechnology, and Amunix Pharmaceuticals, contributing to the portfolio’s strong demand proposition.
History and Development of Genesis
Bain Capital Real Estate and Phase 3 Real Estate Partners initially acquired the site in two transactions back in 2015. Following the acquisitions, they transformed the property into the flagship Genesis facility in South San Francisco, making it one of the largest, ready-to-occupy life sciences campuses in the region.
Remarks from Leadership
Neil Fox, CEO of Phase 3 Real Estate Partners, stated, “Phase 3 Real Estate Partners was blessed to be able to work with such an incredible canvas created by the previous ownership and designed by Skidmore Owens Merrill Architects. This project allowed us to transform a meticulously designed site into a valuable asset for the burgeoning life sciences sector.”
Joe Marconi, Managing Director at Bain Capital Real Estate, commented, “The Genesis platform continues to showcase the effectiveness of our customer-centric investment strategy, emphasizing our commitment to supporting our tenants’ success. Our adeptness in converting office spaces to lab facilities allowed us to unlock the hidden potential of this office project, ultimately curating a state-of-the-art research campus.”
Investment Strategy and Market Presence
Bain Capital Real Estate’s life sciences sector initiatives have totaled around 5.0 million square feet of acquisitions and improvements within key U.S. markets. The firm, established in 2018, focuses on navigating hard-to-access real estate segments that are driven by robust, enduring trends, supporting their long-term growth methodologies.
About the Companies Involved
Bain Capital Real Estate: Founded to pursue unique investment opportunities, Bain Capital Real Estate has invested over $4.5 billion of equity in a diverse range of assets since 2010. Their emphasis on small to mid-sized assets allows for operational enhancements and value creation through in-depth industry expertise.
Phase 3 Real Estate Partners: Operating from San Diego, San Francisco, and Boston, Phase 3 specializes in developing high-quality life science facilities. They are strategically positioned in major innovation hubs to expedite life science companies’ progress towards their scientific advancements.
