CBRE Investment Management expands its life science holdings with the purchase of Park Point, a 662,607 square foot life science campus in Research Triangle Park in Durham, NC, on behalf of a separate client. That triangle business journal reported Starwood Capital Group sold the five-building, 95-acre campus to the global real estate investment management firm for $288 million.
A subsidiary of Starwood Capital Group and its partners Trinity Capital Advisors and Vanderbilt Partners acquired Park Point in July 2019 for $37 million. The site has been vacant since 2016, when former main tenant Nortel Networks left the company after filing for bankruptcy. The joint venture spent more than $120 million to refurbish the building, which reopened in 2021 and offers flexible space solutions for innovative office, life science and Good Manufacturing Practice applications. The property is also eligible for an additional 2.2 million square feet of development.
On-campus facilities at 4001 NC Highway 54 include a fitness center, coffee shop, indoor and outdoor common areas, athletic fields, hiking trails, 2,546 parking spaces and a conference and training center. Park Point also has new, efficient systems that reduce energy and water consumption and improve air quality. Electric vehicle charging stations will be installed on site.
The Class A property is consistent with the company’s commitment to investing in life science assets, as demand for modern, responsive life science properties remains strong to provide specialized, adaptable spaces dedicated to the scientific research are required.
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Sondra Wenger, head of the Americas Commercial Operator Division for CBRE Investment Management, said in a prepared statement that life sciences end users have very specific and demanding needs for laboratory and research space and that they believe Park Point meets those needs and is good for Company’s investment fits strategy.
Wenger noted the property’s location in Raleigh-Durham’s Research Triangle Park as an advantage given its solid economic fundamentals. The Research Triangle attracts a strong base of scientific talent and is close to leading educational and medical institutions. She also highlighted Park Point’s features, including shared spaces, flexibility, technology and wellness options. Park Point offers easy access to Interstate 40, NC Highway 54 and Davis Drive. Raleigh-Durham International Airport is 5 miles from the Durham campus.
tenants belong Charles River Laboratorieswhich signed a 70,369-square-foot lease with the former owners in January 2021 to occupy the first and second floors of the three-story Edge West building. GRAIL Inc. leases 200,000 square feet and works on early cancer detection platform. recovery3da medical device maker, is expected to occupy 50,225 square feet between the Edge West building and the Grid building by early 2023, according to the triangle business journal.
Previous life science offerings
CBRE Investment Management, formerly known as CBRE Global Investors, had $146.9 billion in assets under management as of June 30. In July, a joint venture between a CBRE IM sponsored fund and a public REIT acquired 300 Third St., a 132,000 square foot life science property in Cambridge, Mass Alexandria Real Estate Stocks. CBRE IM is the majority owner of the property, which consists of a six-storey building with laboratory and office space and a restaurant. The property is fully leased to Alnylam Pharmaceuticals and the retail space is occupied by Fuji at Kendall, a sushi restaurant. It was the second life science real estate investment on the market in three months. Also in April, CBRE IM acquired an equity interest in a 432,931 square foot building at 100 Binney St., also from Alexandria Real Estate Equities.