Last week, Kilroy Realty Corp. announced that it has completed the acquisition of a life science development site in South San Francisco. Fully entitled for 2.5 million square feet, the 40-acre site was purchased for $308 million and named “Kilroy Oyster Point.” It will eventually host an 11-building laboratory and office complex, adjacent to the company’s already existing Oyster Tech Center.
Located at the intersection of Oyster Point and Marina boulevards, the site was previously owned by Oyster Point Development, a subsidiary of Greenland USA. According to Bisnow, the developer had a $2 billion plan for it, consisting of 1,200 housing units. The project got halted after new Chinese government regulations regarding big overseas investments came into play.
John Kilroy, KRC chairman and CEO, stated about the acquisition: “Kilroy Oyster Point is a significant opportunity to expand our West Coast life science platform in a prudent and disciplined manner. It offers all the advantages we look for in new development—a strong location in a world-class market serving a dynamic industry with all the services and amenities required to attract today’s young, urban innovative workforce.”
The South San Francisco office and laboratory scene is booming right now, as the vacancy rate for this kind of space is below 3%. More than 200 biotech companies, including Genentech and Amgen, are based here, and this sector will continue to attract investors, as it offers easy access to talent from universities like UC San Francisco, UC Berkeley and Stanford.