Two Biotechs Take Meaty Amounts of Space in Big South S.F. Froject

A high-profile, one-million-square-foot development along Highway 101 in South San Francisco has landed two up-and-coming biotech companies, Five Prime Therapeutics, Inc., and Global Blood Therapeutics, Inc., that, together, will take roughly a fifth of the project. Located at the epicenter of the life science and technology industries, The Cove at Oyster Point is an 875,000-square-foot, life science/tech campus featuring 20,000 square feet of on-site retail, a planned upscale hotel, green space, bay-front walking trails, an outdoor amphitheater, and other amenities. The campus consists of seven buildings ranging in size from just over 115,000 to 182,000 sq. ft., and can accommodate users from 30,000 sq. ft. to 847,000 sq. ft.

In December 2016, Five Prime Therapeutics Inc. (NASDAQ: FPRX) signed a lease for 115,466 square feet of the HCP Inc.-developed campus. The lease is for an initial five years, with a one-time option to extend it for an additional five years. Prices start at about $60 per square foot, and ramp up over a decade to more than $80.

Five Prime Therapeutics is a leader in the discovery and development of innovative protein therapeutics. It library of more than 5,700 human extracellular proteins substantially represents all of the body’s medically important targets for protein therapeutics. The clinical-stage biopharmaceutical company was founded in 2001, by Lewis T. “Rusty” Williams, M.D., Ph.D., who serves as its President and Chief Executive Officer. The company will fully occupy a proposed four-story, 115,466-square-foot office and laboratory facility at 111 Oyster Point Drive, and is expected to take occupancy upon the building’s completion in the fourth quarter of 2017.

On March 17, 2017, Global Blood Therapeutics, Inc. (NASDAQ:GBT) entered into a lease with HCP Oyster Point III LLC, for approximately 67,185 square feet of space in a building located at 171 Oyster Point Boulevard. The term of the lease will commence on the later of December 15, 2017, or the date that the premises are ready for occupancy, and will expire on the day prior to the tenth anniversary of the commencement. The Company has an option right to extend the lease term for a period of ten years.

Global Blood Therapeutics, Inc. is a clinical-stage biopharmaceutical company engaged in discovering, developing, and commercializing therapeutics to treat blood-based disorders. It is developing its initial product candidate, GBT440, as an oral, once-daily therapy for sickle cell disease (SCD) and is evaluating GBT440 in SCD subjects in an ongoing Phase I/II clinical trial. SCD is a genetic disease marked by red blood cell destruction and occluded blood flow and hypoxia, leading to anemia, stroke, multi-organ failure, severe pain crises, and shortened patient life span.

Investor Drops $185 Million on Prime San Francisco Office Building

The Walnut Hill Group is a San Francisco-based real estate investment company committed to investing, owning, and operating a real estate portfolio composed of various asset types in strong primary markets. The company focuses on target markets including San Francisco, New York, Washington DC, Boston, and Los Angeles.

Recently, in partnership with a Taiwanese family, Walnut Hill bought 150 Spear St., an 18-story, 264,492 square-foot office tower, located in San Francisco’s South Financial District. The price paid to Principal Real Estate Investors, which bought the tower in 2007 for $142.5 million, was $185 million, or about $700 per square foot. Principal sold the property through the San Francisco office of Cushman & Wakefield. The listing agents were Seth Siegel and George Eckard.

The Class-A, LEED certified building was originally constructed in 1981. When it was first acquired, the property was 72 percent occupied. At the time of the sale, the asset was 91 percent full. Some of its commercial tenants include: ICR, Vox Media, Castlight Health, Freeland Cooper & Foremand, Brigherion, Roper, Majeski, Kohn & Bentley, Lululemon, Athletica, OneLogin, Forrester Research, Specialty’s, Gartner, Krauter Group, Inside Track, Nasdaq Stock Market, Spring Studio, Confirmit, Phoenix Age, and TMP Worldwide Advertising.

Walnut Hill was founded in 2011 by its managing principals, Albert C. Hwang and Jimmy G. Park. Prior to joining Walnut Hill, Mr. Hwang was a partner at the law firm of Troutman Sanders LLP, where his primary practice areas included Commercial Development & Real Estate Investments and International Law. Prior to Walnut Hill, Mr. Park was a Vice President of Acquisitions at Beacon Capital Partners, LLC where he primarily focused on west coast acquisitions and dispositions.