CHARLOTTE, N.C., Feb. 3, 2021 /PRNewswire/ -- Barings, one of the
world's leading financial services firms, announced today it has
closed a joint venture between Barings and Phase 3 Real Estate
Partners / Bain Capital to reposition and recapitalize the Class-A
office property, 1155 Island, in Downtown
San Diego, CA, converting it to a Premier Class A life
science building.
Formerly known as The Thomas Jefferson
School of Law, this approximately 203,000 square foot high
quality 8-story office building, is being transformed into a
state-of-the-art life science property with an anticipated
completion date in late 2021. With growing life science demand in
San Diego, the property is poised
to be at the center of San Diego's
newest life sciences hub-Downtown San Diego. Life science
demand in this area is increasing due to the anticipated
connectivity to UCSD, one of the top life science universities in
the U.S, through the new downtown UCSD satellite building, as well
as the late 2021 extension of the Blue Trolley line, connecting
Downtown San Diego to the main
UCSD campus. Physical characteristics of 1155 Island, including
large floorplates, high slab to slab heights, make the building
very conducive to the life science conversion, while access to the
Gaslamp Quarter will provide retail, dining and entertainment
amenities for its tenants.
"This investment is a prime example of Barings' value-add real
estate investment strategy, which focuses on creating uniquely
competitive real estate that attracts innovative and growing tenant
demand," said Joe Gorin, Managing
Director and Head of Portfolio Management and Value-Add Investing
for Barings U.S. Real Estate Equity. "We target market locations
and projects at the intersection of a highly educated workforce and
a significant STEM employer presence. As the third-largest
life science market in the US, it was only a matter of time before
life science tenants would have high quality occupancy options
within Downtown San Diego's highly
amenitized work, live, play environment. We are excited to
help lead this migration."
"The joint venture life science conversion of 1155 Island
represents a new partnership between Barings and Phase 3 / Bain
Capital," said Chris Black, Barings
Head of Real Estate Acquisitions, Western U.S. "Life science is one
of the most dynamic industries with continued increases in private
and public funding which will drive demand for the foreseeable
future."
1155 Island represents a commitment to sustainability, tenant
health and wellness, and digital connectivity. The development
includes smart building systems, green design elements, and is
currently LEED-Gold.
About Barings
Barings is a $345
billion* global investment manager sourcing differentiated
opportunities and building long-term portfolios across public and
private fixed income, real estate, and specialist equity markets.
With investment professionals based in North America, Europe and Asia
Pacific, the firm, a subsidiary of MassMutual, aims to serve
its clients, communities and employees, and is committed to
sustainable practices and responsible investment. Learn more at
www.barings.com.
*Assets under management as of December
31, 2020
About Bain Capital Real Estate
Bain Capital Real
Estate was formed in 2018 and pursues investments in often
hard-to-access sectors underpinned by enduring secular trends that
drive long-term demand growth for real estate assets and
services. The Bain Capital Real Estate team has been executing
its strategy since 2010 (formerly as a part of Harvard Management
Company), having invested over $4.0
billion of equity in over 400 assets across multiple
sectors. Bain Capital Real Estate focuses on small to
mid-sized assets where the team applies its deep industry expertise
to accelerate impact and drive operational improvements. Bain
Capital Real Estate's strategy aligns with the value-added
investment approach that Bain Capital pioneered and leverages the
firm's global platform and significant experience across asset
classes to further bolster its insights and sourcing
capabilities.
About Phase 3 Real Estate Partners
Phase 3 Real Estate
Partners, Inc., ("Phase 3") develops premier ready to occupy
research and development facilities in the major innovation
clusters of the United States.
Phase 3's focus on delivering the highest quality space with
accelerated speed to occupancy within these key geographies allows
companies to immediately pursue their scientific goals. The Phase 3
team delivers a clean, modern design aesthetic, the right
combination of amenities to create community and appropriate
infrastructure to meet the needs of the companies who call our
facilities home. The firm's expertise in development, construction
and management of life science facilities results in a strong
partnership between our tenants and our team. Phase 3's
current portfolio consists of nearly 3 million square feet and is
growing in San Diego, San Francisco and Boston.
Contact
Cheryl Krauss,
Barings, 980-417-5858, cheryl.krauss@barings.com
21-1505285
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SOURCE Barings