Playa Vista is getting a new biomanufacturing complex.
A joint venture between Hatchspaces, NexCore and Nuveen Real Estate has bought a 56,300-square-foot industrial complex in Playa Vista and plans to redevelop it as a biomanufacturing and headquarters for a new tenant, the companies announced this week.
A purchase price was not disclosed and has not yet appeared in public records. A limited liability company linked to Montana Avenue Capital Partners has owned the property since 2018, when it purchased the site for $31.4 million, records show.
Located at 5005 McConnell Avenue, the property is now leased to Armata Pharmaceuticals. Once the property renovation is complete, Armata will use it as its headquarters.
Armata is currently headquartered nearby at 4503 Glencoe Avenue in Marina del Rey, a slightly smaller property owned by Hankey Investment, property records show. The company develops therapies and medicines that aim to combat antibiotic resistance, according to its website.
The growth of the life sciences industry across Los Angeles has “quickly created a need for modern biomanufacturing facilities,” Hatchspaces co-founder Allan Glass said in a statement. “The industry is past the point of being an emerging market.”
Vacancy rates for life science properties in West Los Angeles — which includes Playa Vista — are sitting at zero percent, according to CBRE. Rents in the West L.A. region are also the highest across Greater Los Angeles, with an average monthly rate of $5.60 per square foot.
The life science market in Los Angeles has seen recent growth but remains small compared to booming hubs in San Diego, Boston and Silicon Valley — three markets that have driven the sector’s growth over the last ten years.
This is the fifth project from HATCHspaces’ joint venture. In November, the venture bought a site near the Expo Light Rail Line for $10.8 million to build a 100,000-square-foot life sciences building.