March 31, 2022 9:00 AM
Newmark announces it has completed the $145 million sale of the Governor Park Portfolio, two office buildings with life sciences redevelopment potential located at 6200 and 6220 Greenwich Drive in San Diego, California. Newmark Co-Head of U.S. Capital Markets Kevin Shannon and Executive Managing Directors Brunson Howard, Paul Jones and Ken White represented the seller in the transaction.
“The Governor Park Portfolio generated tremendous investor interest due to its unique combination of scale, proximity to the center of San Diego’s innovation economy, and the near-term opportunity to capture unmet demand for tech and life science facilities,” said Howard.
Shannon added, “San Diego continues to emerge as one of the most sought-after innovation markets on the West coast. The tech and life science sectors are both high growth and exceedingly resilient which is attracting the highest quality capital to the region.”
The portfolio comprises two office buildings situated on individual parcels. The building at 6200 Greenwich Drive measures 70,987 square feet and is situated on a 4.41-acre parcel. It is 100% leased to University of California, San Diego (UCSD) through May 2026. The building at 6220 Greenwich Drive totals 141,214 square feet and is located on its own 6.24-acre parcel. The building is fully leased to Mitchell International through October 2025. The portfolio has been
institutionally owned and operated since the buildings were originally developed. It is serviced by ample surface parking as well as a five-story parking facility, providing an above-market-standard parking ratio.
Mitchell International recently placed the entire 6220 building on the market for sublease, making the 100% leased portfolio 67% available for a variety of different executions at the site. These include the near-term potential to reposition or convert the building to life sciences use to capture the explosive growth in San Diego’s thriving innovation sector. The portfolio also offers the longer-term option to execute a ground-up life science campus development across both parcels.
The portfolio presents direct, high-image visibility to Interstate 805 and is located in San Diego’s Governor Park market, just two exits south of the region’s amenity base in University
Town Center (UTC). UTC and the closely located Sorrento Mesa marketplace are at the confluence of San Diego’s surging life science and technology markets.
Life science venture capital funding totaled a record $43.3 billion in 2021, according to a study from Newmark Research. Abundant fund dry powder and fundraising activity as well as continued disruption to property types such as conventional office have fueled the increase in capital into life science real estate. This trend, combined with 2022 deliveries of newly developed and renovated life science product in the top supply-constrained markets, is expected to keep life science investment at higher levels compared with pre-pandemic years.
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Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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