New Year New Biotech News & Highlights 🧬

HNY!

And we’re back with some promising new biotech opportunities, some big UCLA news, some notable fundings and highlights, and last but not least some interesting content I thought you might find of value.

Enjoy!

FEATURED AVAILABLE LAB SPACES

We have two new and exciting biotech opportunities located in Pasadena.

As always, if you see something you like or need more info, let me know, and I’ll get right back to you. -Ted

401-415 South Lake Ave, Pasadena

The building is owned by Macy’s, but Lowe Development will reposition the project into a full-service life science campus with Macy’s moving out. Similar to the recent news about UCLA buying the Google campus in West LA (see below), this will be a very similar project turning old retail into a biotech hub.

Why You Might Be Interested:

1. Ideal location on South Lake, which is not only adjacent to hundreds of retail and restaurant amenities, including the new Erewhon, but is also within walking distance to Cal Tech.

2. The building is a four-story building consisting of 298,029 RSF and has many features ideal for life science users, such as a separate dedicated loading area off of Hudson Street, several large services elevators serving the premises, a separate dedicated utilities area for all of the mechanical and lab infrastructure, abundant surface and structured parking given the previous retail use, ideal ceiling heights of 16’ to 20’ on every floor, massive patios and terraces with views for outdoor dining, collaboration, and a relaxing lower level that is ideal for vivarium and/or GMP facilities, abundant existing power and HVAC in place, huge shaft areas for venting of the labs, ability to create natural sunlight and skylights and large efficient floorplates which can be demised in many different ways.

3. The life science use is already a permitted use at this location and given Pasadena’s new improved life science zoning changes, permitting should be streamlined (more on Pasadena’s improved zoning in the Real Estate Highlights section below).

555 S Arroyo Parkway, Pasadena

This reimagined campus will be known as Affinity Wellness Campus and is branding itself as a medical and life science innovation community. The anticipated delivery of the building is 2025 - 2026.

“Affinity will inspire and empower doctors, researchers, staff and the community to embrace all aspects of health and well-being. It will provide wellness services and resources that promote healthy living in one location.”

Why You Might Be Interested:

1. This expansive 3.3-acre site is a landmark Pasadena location and offers 135,000 square feet of medical/life science space with a flexible floor plate design.

2. Landmark signage at the high profile intersection of Arroyo Parkway and California Blvd.

3. Easy parking with motor court and subterranean parking garage.

4. Located adjacent to the Del Mar and Fillmore Metro Gold Line Stations.

5. Walkable to a ton of well known Pasadenaa amenities, adjacent to Whole Foods.

REAL ESTATE HIGHLIGHTS

The City of Pasadena unveiled strategic zoning changes aimed at expanding and growing the City’s bioscience industry. The revised zoning regulations encompass adjustments that streamline the process for establishing and expanding life science facilities in the City. With eased restrictions on parking and conditional use permit requirements and greater allowances for building heights and the use of roof space for equipment, these changes aim to facilitate the creation of state-of-the-art research centers, laboratories, and biotech facilities, fostering an environment for scientific breakthroughs and job creation.

The changes also simplify the current definition of research and development (R&D) in the City’s zoning code, removing distinctions between office and non-office uses, which will be key to life science companies, whose facilities commonly combine labs, offices, and other research spaces together to fulfill their unique business needs. (source: City of Pasadena)

UCLA will establish a biotech hub at the former Westside Pavilion Mall. With the $700 million acquisition, UCLA will establish a major research facility housing a newly created immunology center and the university's quantum science center. The deal, aided by a $500 million investment from the state of California, also releases Google from an unwanted lease and frees Hudson Pacific Properties from $326 million in debt. Governor Gavin Newsom and UCLA leadership announced that the 587K square foot former mall, remade into Class-A office space called One Westside, will become the UCLA Research Park, a hub for the new California Institute for Immunology and Immunotherapy at UCLA and the UCLA Center for Quantum Science and Engineering. (source: Bisnow)

Ted’s Take: The UCLA purchase is HUGE biotech news. However, it’s not good for the local commercial real estate market as it sops up demand that would have gone to speculative developments. One step forward, but one step back (Google backed out of 600k square feet to allow this deal to happen).

NOTABLE FUNDINGS, GRANTS + HIGHLIGHTS

Duarte-based Prolacta Bioscience, which supplies a human breast milk-based nutritional product for premature and critically ill infants to hospitals, is getting into the pharmaceutical business. Prolacta announced that researchers at City of Hope initiated a Phase 2a clinical trial by dosing the first patient with a drug made from human milk aimed to boost immunity in patients who have undergone stem cell transplants to combat blood cancers. (source: Los Angeles Business Journal)

Researchers from the UCLA Health Jonsson Comprehensive Cancer Center have received two grants totaling $9.1 million from the National Cancer Institute to advance liquid biopsy technologies for the early detection of cancer, which can significantly improve treatment outcomes and reduce the number of deaths caused by the disease. The first grant will develop and validate a method to integrate blood, imaging, and clinical data for the early detection of liver cancer. The second grant focuses on improving the early detection of various cancers using the cell-free DNA methylome to detect and locate colon, gastric, liver, and lung cancers. (source: News Medical)

Culver City-based ImmunityBio has traded future profits for cash to kick off the commercialization of its near-approval cancer drug candidate. Oberland Capital took the other side of the deal, handing the biotech $210 million, with more to follow, in return for quarterly royalty payments on global net sales. (source: Fierce Biotech)

WHAT I’M READING (AND ENJOYING!)

↗️ Building on the above UCLA purchase news, this piece examines how impactful this could be for LA’s biotech ecosystem: UCLA's New Research Center Could Be The Biotech Boost The LA Area Needs.

🎥 Here’s a KCAL News video on the new UCLA research and innovation hub project.

🏢 This Bisnow article breaks down the tough real estate footprint decisions a biotech company faces when they receive positive drug trial phase news and FDA approvals. And this article is a nice companion piece on how new therapies translate to real estate. The three big decisions: build, buy, or partner.

📊 Fierce Biotech’s recap of the 2023 venture capital raises, deals, and IPOs. And a hint to what 2024 may bring.

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

Ted Simpson
Founder and CEO
Commercial Real Estate Advisors
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