The acquisition could mark a shift in the market for biotech space, according to John Garrigan of CB Richard Ellis in San Diego, one of a CBRE leasing team hired by the new owners. Biotech space was once in demand on both a for-sale and a for-lease basis, but Garrigan calls the current biotech market "lackluster," so the Muller Co.'s plan to convert some of the Torrey Pines space for general office use could signal a change of direction.
At a time when the biotech real estate market has been lackluster, the Muller Co.'s purchase is significant," Garrigan says. He says Muller has a good track record of predicting future market demand.
The Torrey Pines property is located at 10466 N. Torrey Pines Blvd. at the intersection of Torrey Pines Road and Genesee Avenue. Scripps Research Institute and Pfizer occupy space in the building and will continue to lease at Torrey Pines. Scripps paid $30 million for another nearby property in March after occupying it for 25 years.
Scripps conducts cytology research at the project, which originally sold in 1992 for $17 million. Along with its plans for repositioning the asset, the Muller Co. plans to remodel the parcel and will relocate its San Diego office to Torrey Pines.
Brad Black, Doug Lozier and John Garrigan of CB Richard Ellis have been selected to handle the leasing of the property. There is currently 70,000 sf of space available for lease at Torrey Pines.
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