“Torrey Ridge Science Center is one of the premier life science campuses in the region,” Alsadek says. “SteelWave and Walton Street's extensive, relevant renovations enhanced the campus even further resulting in considerable interest from large institutional national and international buyers.”

“This was a highly strategic acquisition for Alexandria in Torrey Pines, one of our core San Diego submarkets,” says Daniel J. Ryan, executive vice president and regional market director of San Diego for Alexandria Real Estate Equities, Inc. “The Torrey Ridge Science Center campus provides us with the opportunity to achieve significant cash flow growth as leases are renewed or rolled over, given that many of the in-place leases are below market. The campus also gives us the flexibility to convert traditional office space, which is approximately 22% of the project, to wet lab research space in order to respond to strong demand from leading biotech entities in San Diego.”

San Diego is home to one of the top three life science clusters in the United States. According to CBRE, the San Diego life science direct vacancy rate in second quarter 2016 was 6% and in Torrey Pines the rate was 1.4%.

SAN DIEGO—Walton Street Capital and SteelWave sold Torrey Ridge Science Center to an affiliate of Alexandria Real Estate Equities Inc. for $182.5 million. The three-building, 291,799-square-foot life science campus was 87% leased at the time of sale.

Located at 10578, 10614 and 10628 Science Center Dr. in the Torrey Pines submarket of San Diego, Torrey Ridge Science Center is a class A life science campus leased to industry leaders such as Regulus Therapeutics, Pacira Pharmaceuticals, Nitto BioPharma, Interpreta and BP Technology Ventures. Many of Torrey Ridge Science Center's existing leases are below market.

Louay Alsadek and Hunter Rowe of CBRE were the investment advisors and Rich Danesi and Ryan Egli of CBRE were the market experts representing the sellers, Walton Street Capital and SteelWave. Alexandria Real Estate Equities Inc. represented itself.

Torrey Ridge Science Center was built in 2004 and since 2012 the sellers invested $55 million in base building and tenant improvements, including upgrading common areas, signage and landscaping to first-class standards as well as creating a new dedicated central plant and adding chilled water systems for each building. The campus also includes newly built tenant amenities including a fitness center, conference center and Wich Addiction café.

“Torrey Ridge Science Center is one of the premier life science campuses in the region,” Alsadek says. “SteelWave and Walton Street's extensive, relevant renovations enhanced the campus even further resulting in considerable interest from large institutional national and international buyers.”

“This was a highly strategic acquisition for Alexandria in Torrey Pines, one of our core San Diego submarkets,” says Daniel J. Ryan, executive vice president and regional market director of San Diego for Alexandria Real Estate Equities, Inc. “The Torrey Ridge Science Center campus provides us with the opportunity to achieve significant cash flow growth as leases are renewed or rolled over, given that many of the in-place leases are below market. The campus also gives us the flexibility to convert traditional office space, which is approximately 22% of the project, to wet lab research space in order to respond to strong demand from leading biotech entities in San Diego.”

San Diego is home to one of the top three life science clusters in the United States. According to CBRE, the San Diego life science direct vacancy rate in second quarter 2016 was 6% and in Torrey Pines the rate was 1.4%.