BioMed Realty Plans Life Science Build in Seattle’s South Lake Union

Blackstone portfolio company BioMed Realty has acquired two adjacent development parcels in Seattle’s South Lake Union totaling 1.8 acres. The parcels can support the development of class-A lab and office space to serve life science companies. The terms of the transaction, including the price, were not disclosed.

The development sites are located at the epicenter of Seattle’s growing life science market. It is near the University of Washington School of Medicine, the Bill and Melinda Gates Foundation, and the Fred Hutch Cancer Research Center, and Amazon, Google, Facebook and Apple all have offices in the area.

The area is racking up impressive transactions. In December, Clarion Partners acquired a 70% interest in a three-building 322,858-square-foot life science portfolio for $450 million from Alexandria Real Estate Equities. The transaction was the largest in Washington State last year and the first core life science investment opportunity in the market since 2014. The deal, along with this new development play from BioMed, are illustrative of the market growth. According to Jesse Ottele of Newmark and one of the brokers that worked on the Clarion deal, the Puget Sound area ranks third nationally for life science growth over the last five years, and capital investment has increased 120% during that time.

This isn’t BioMed Realty’s first development play in the area, either. It is currently under construction on Dexter Yard, a 500,000 square foot life science and technology office project.

Outside of Seattle, BioMed is expanding in other core life science markets like San Diego and Boston. In April, the firm also secured development approval from the city of Emeryville, CA, to expand its 12-acre Emeryville Center of Innovation campus. The project includes 910,000 square feet of new class A, lab and office space, as well as three acres of public green space.