In a recent sale, the owner of an 82,000 square-foot life science building at 10222 Barnes Canyon, in the heart of Sorrento Mesa, got more than triple what it paid for the property just two years prior.
La Jolla-based commercial real estate company Bollert LeBeau sold the building — a fully leased, two-story Class A life science office and lab — to TH Realty for $43.2 million. The buyer is a subsidiary of New York-based TIAA, a pension fund and financial services firm that in 2017 was the third largest commercial real estate manager in the world.
Seller Bollert LeBeau purchased the building from Qualcomm for $12.1 million just 24 months prior, according to data from CoStar. During its ownership, Bollert LeBeau spent $17 million to convert the space into a lab-ready venue, and attracted Invivoscribe Technologies and Crinetics Pharmaceuticals as tenants. Renovations included a new building exterior, enhanced landscaping and a complete redo of the interior.
“The building potential was apparent,” Bollert LeBeau president Steve Bollert said in a statement. “We knew the interior clear heights would make for fantastic open office and lab space and give us the flexibility to respond and appeal to a variety of life science tenants.”
The flip follows a familiar pattern for Bollert’s firm, which specializes in converting standard office spaces into attractive life science facilities.
The transaction closely trails another landmark sale in the area, and continues a trend of investment firms buying up industrial buildings to refurbish and sell.
Earlier this month, Boston-based Longfellow Real Estate Partners bought a cluster of life science offices, with 318,969 total square feet in Sorrento Valley, for $112 million. Previous owner, San Diego-based Parallel Capital Partners pocketed nearly $86 million more than it paid for its former portfolio of buildings in the region.