Longfellow Real Estate Partners has snagged a $310 million construction loan to build a 315,000-square-foot life science campus in Millbrae.
The Boston-based developer secured the financing for the six-story research laboratory at 210 Adrian Road, which broke ground this month, the San Francisco Business Times reported.
The loan, arranged by JLL, was from Otera Capital, based in Montreal, Canada.
The project, known as Avia Labs at Millbrae Station, will be next to the Millbrae BART and CalTrain station. It aims to be the first all-electric life science development in the state. The project, initially announced at 260,000 square feet, has been upgraded to 315,000 square feet, according to a press release.
The research building, now targeting LEED Gold certification, will include a fitness center, public cafe, conference rooms, bike storage, two levels of underground parking and a large terrace with city and mountain views.
Avia Labs is a speculative project, Longfellow told the Business Times, meaning it doesn’t have a tenant lined up.
Longfellow, the largest privately held life science real estate firm in the country, bought the 2.1-acre property in the fall of 2021 for $80 million.
In recent years, the company has bought property in San Mateo and across the bay in Emeryville. Its portfolio, which spans more than 12 million square feet of lab space, also includes projects in Redwood City, Palo Alto and San Francisco’s Mission Bay.
In July, Eikon Therapeutics signed a 285,000-square-foot lease at the Alexandria Center for Life Sciences-Millbrae, a 570,000-square-foot life sciences campus developed by Pasadena-based Alexandria Real Estate Equity next door to Avia Labs.
The life science market in the Mid-Peninsula, which includes Millbrae, had a vacancy rate of 9.7 percent in the final quarter of last year, according to JLL, likely boosted by the completion of nearly 700,000 square feet of new facilities in 2022.
— Dana Bartholomew
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