Holiday Happenings in the World of Life Science

In this issue, I showcase two available lab spaces in great locations, highlight a new build in Los Angeles, share some funding news, and highlight several pieces of content that I think you might find worthy of your time.

Happy Holidays!

FEATURED AVAILABLE LAB SPACES

605 East Huntington Drive, Monrovia, CA

Formerly occupied by Curative, this is 33,500 SF of ready-to-move-in lab and office space (50% lab / 50% office) at rents half the national average. Close to the City of Hope and its renowned cancer hospital, as well as just a short 20-minute drive to Cal Tech. Completed in 2021, this fully built-out BSL-2 Lab was barely used, and I believe it to be one of the most attractive opportunities available. Below are some of its impressive tech specs:

• Flexible Layout that is Compatible with Multiple Lab Uses
• Existing Loading Door for Shipping /Receiving and Storage
• Clear Height 15’
• 4,000 Amps of Power
• Lab Areas are rated ISO 7
• Water Filtration System with 92-gallon Internal Reservoir
• Dedicated HVAC with 100% Outside Air and No Cross Contamination
• Back Up Generator

Reply to this email if you’d like more info or to tour.

4900, 4910 & 4920 Rivergrade Road, Irwindale, CA

The Campus at SGV. The Campus at SGV is a 704,620 square foot, low-rise suburban office campus situated just 20 miles East of Downtown Los Angeles and minutes from major freeways. Owned by MetLife, tenants include City of Hope (pathology lab), United Healthcare, UCLA & Kaiser Permanente.

This campus features loads of amenities for that all-important work-life balance and has over 100,000 square feet of space available, ready to accommodate your life science needs.

Reply to this email if you’d like more info or to tour.

REAL ESTATE HIGHLIGHTS

Stockdale Capital Partners has announced plans for 656 S. Vincente Boulevard, a medical office and life sciences property in Los Angeles’ Golden Triangle area. The project will be the first new medical office and life sciences building constructed in the area in more than 20 years. The 12-story property will feature 145,000 square feet of Class A medical office and life sciences space that combines both environmental sustainability and best-in-class amenities. The building will feature electric vehicle charging stations, ample bicycle parking, direct access to a major transit thoroughfare and 418 parking spaces with full valet service for tenants and patients. Core-and-shell completion is slated for October 2026. (source: REBusiness Online)

NOTABLE FUNDINGS + HIGHLIGHTS

Westlake Village-based immune-dermatology company Arcutis Biotherapeutics Inc. has received federal approval to begin marketing its drug to treat a type of dermatitis in children ages 6 to 11. The company had already received approval to market the drug for use in people 12 and over. Separately, the company announced a public offering of $100 million in shares and warrants to raise capital to fund the continued development, approval, and commercialization of its multiple drug programs. (source: San Fernando Valley Business Journal)

West Hills-based ImmPACT Bio has been granted FDA Fast Track Designation (FTD) for IMPT-514, a potential first-in-class CD19/CD20 CAR-T therapy for the treatment of patients with active refractory lupus nephritis (LN) and systemic lupus erythematosus (SLE). In August 2023, ImmPACT Bio received FDA clearance to initiate clinical development of IMPT-514 in an open-label Phase 1b/2 dose escalation trial in participants with active, refractory SLE. (source: PR Newswire)

San Diego-based MBrace Therapeutics closed an $85 million Series B led by TPG’s Life Sciences Innovations fund and The Rise Fund. MBrace is developing a drug that targets a receptor found in multiple cancers, including breast, non-small cell lung, colorectal, gastric, and pancreatic. Founded in 2020, MBrace has raised $110 million, per the company. (source: Crunchbase)

NEW VC FUND LAUNCHED

VC Firm Bioluminescence Ventures emerged from stealth with $477 million in assets across two funds. Bioluminescence, led by former Andreessen Horowitz senior partner Kouki Harasaki, plans to invest in “transformative” biotech companies with first-in-class or best-in-class therapeutics that are “addressing large patient populations” with currently unmet medical needs. The firm’s investments will focus on industry breakthroughs in biology, drug discovery, genetic medicines, and computational biology platforms. (source: BioSpace)

THE ALLEN MATKINS LIFE SCIENCE SYMPOSIUM - MY TOP 10 TAKEAWAYS

Did someone say symposium?! A couple of weeks ago, I attended the inaugural Allen Matkins View From the Top Life Science Symposium. It was a two-hour webinar packed with info.

Here are my 10 high-level takeaways:

1. Covid created a sugar high among biotech and pharma companies, peak investor interest, high demand for lab space, and thus, real estate investors.

2. Now, demand for space is way down, with only smaller (under 30k RSF) tenants in the market. Big deals are sidelined (the exception is big pharma).

3. Layoffs were announced for the first time in a long cycle of hiring.

4. Subleases emerging everywhere.

5. Highest vacancy rates (nationally) in the history of the life sciences real estate business.

6. Life science is not immune from WFH, with many employers required to offer this perk to employees.

7. On the capital side: the IPO window closed, values depressed, private capital conservative, and no new funding. New building construction halted.

8. ESG is paramount for these companies’ facilities.

9. Future prediction—2025 normalization.

   • Buildings aren’t commodities. They are quasi-medical devices, making them sine qua non for the industry. Musk calls Tesla a robot on 4 wheels (this is from a podcast, not the panel).

10. Bright spots--Kendall Square in Cambridge, MA, has a 2% vacancy rate and is a 10-minute walk from the MIT Bio department. This submarket is completely stable.

Btw, if you’re even looking for a lawyer in the life science space, our go-to is Martin Togni, a partner in Allen Matkin’s San Diego office.

WHAT I’M READING (AND ENJOYING!)

🏢 Scientists No Longer Banished to the Basement: Architects Blend Labs, Offices for Biotech Tenants. This Costar piece talks about how architecture firms like SGA and others are now designing spaces to unite researchers, sales, and marketing.

I also read two solid finance pieces from BioPharma Dive:

📈 Biotech M&A is picking back up. Click for the latest deals.

📊 How biotech IPOs performed in the 3rd quarter. Eight biotech companies priced IPOs from July through the end of September, raising $1.1 billion in total, according to data compiled by BioPharma Dive. That compares to four in the second quarter, which brought in about $580 million.

Lastly, I thought these WJS Exclusives might be of interest:

• 💼 The first one focuses on John Crowley, longtime CEO of Amicus Therapeutics, who will become CEO of Biotech Innovation Organization (BIO) and a top lobbyist for the biotech industry as it confronts investor skepticism and regulatory challenges. (You might remember John as the father who saved his kids’ lives by developing a cure for Pompei disease.)

• 💲 CVS plans to overhaul how much drugs cost. The nation’s biggest drugstore chain will get paid based on the amount it pays for drugs, plus a small markup and fee.

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Thanks for reading. If you want me to look into something or have some ideas for the newsletter, reach out, and I’ll get right back to you.

And, as always, we're here to help you with your real estate needs.

Ted Simpson
Founder and CEO
Commercial Real Estate Advisors
(c) +1 310.384.6512
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