CBRE Buys 663K SF Life Science Campus in NC for $288M

CBRE Investment Management (CBRE IM) has acquired Park Point, a 663K SF life science campus at Research Triangle Park in North Carolina for $288M.

Starwood Capital Group sold the 95-acre campus, which encompasses five buildings at 4001 NC Highway 54, according to a report in the Triangle Business Journal.

The campus has pre-approval for an additional 2.2M SF of development, the Journal reported.

In July 2019, Starwood, Trinity Capital Advisors and Vanderbilt Partners acquired Park Point for $37M, three years after its prime tenant—Nortel Networks—vacated the campus after declaring bankruptcy.

The partnership initiated a $120M renovation that reconfigured the complex for flexible lab space and installed sustainable systems that reduce energy us and enhance air quality. The facilities reopened in 2021.

Amenities at the Park Point campus include a fitness center, café, athletic fields, walking trails and 2,546 parking spaces. The campus in Durham, NC is located five miles from Raleigh-Durham International Airport.

The Park Point deal is the third life science acquisition CBRE IM has made in recent months.

In July, a partnership between CBRE IM and a publicly traded REIT bought 300 Third Street, 132K SF life science asset in Cambridge, MA from Alexandria Real Estate Equities for an undisclosed sum.

CBRE IM became the majority owner of the Cambridge building, for which Alexandria paid $73M in 2006. Completed in 2000, 300 Third St. is a six-story building that includes lab and office space, as well as a restaurant.

The Cambridge property is fully leased to Alnylam Pharmaceuticals; the retail space is occupied by Fuji at Kendall, a sushi restaurant.

Tenants at Park Point include Charles River Laboratories, which occupies 70K SF on the first and second floors at the three-story Edge West building; GRAIL Inc., a biotech firm developing an early cancer detection platform, leases 200K SF at Park Point.

Restor3d, a medical device maker, has inked a deal to occupy 50K SF at the campus, beginning in 2023.

Also in Cambridge, CBRE IM in April acquired an equity stake in 100 Binney St., a 433K SF life-science campus, and a partial interest in 40 Thorndike, a 475K SF office campus.

The Boston metro is the largest US life science hub, and it’s getting larger: an estimated 60M SF of life science space is under construction, permitted or proposed.

CBRE IM is pursuing an investment strategy of acquiring value-add assets in the life science sector.