|
|
REITs
|
|
||
Healthpeak sees life science development opportunities, execs say from SNL Real Estate Daily Healthpeak sees life science development opportunities, execs sayByline: Jake Mooney Healthpeak Properties Inc. plans to develop new life science properties in the Boston, San Diego and South San Francisco areas as part of its expansion in the property segment, executives said. The real estate investment trust, which changed its name from HCP Inc. in late 2019, has amassed life science holdings of 1.8 million square feet in the West Cambridge and Route 128 submarkets of Boston over the last two years, including its active and near-term development pipeline. The company is under contract to acquire The Post, a $320 million campus near another of Healthpeak's properties in the Boston market, and closed on a different $333 million acquisition in West Cambridge in December 2019. Executives said the Post property has potential for redevelopment. "It's a 36-acre campus, with a sea of surface parking lot spaces," company President and Chief Investment Officer Scott Brinker said. "That's not a near-term priority, but it's certainly something that when we do life science acquisitions ... we always look for the opportunity to build scale on that campus over time." CEO Tom Herzog said life science properties are "no longer this niche asset class," with large pools of capital chasing properties, driving down purchase yields. While the company plans to develop in each of its core markets for the property type, he added, "we're certainly mindful of making sure that we would look to match whatever new supply we deliver with our view on where demand is, from a tenant perspective within the marketplace." The company is undertaking a $164 million development project in San Diego, on a future life science campus that also includes two land sites and an existing building that is slated for redevelopment. Brinker said the company continues to see "strength and positive momentum" in South San Francisco, where he said it enjoys No. 1 market share. Alexandria Real Estate Equities Inc., a competing real estate investment trust that focuses on life science properties, in January disclosed a joint venture with Boston Properties on a 29.3-acre office and life science campus in the submarket. |
return to message board, top of board |