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Sorrento Mesa Life Science
$41,460,000 Acquisition & CapEx Financing
San Diego, CA | May 2023
Thorofare Capital has provided a $41,460,000 acquisition, CapEx and TI/LC financing Sorrento Mesa Life Science, a creative office to Life Science conversion in San Diego, CA.
The multi-tenant property was 78.5% occupied at the time of loan origination and will undergo more than $10 million of project costs for the ownership to deliver lab space. Once converted, the Property will feature open laboratory space with mobile case work, ceiling utility panels, vinyl composition tile flooring and personal protective equipment (“PPE”) stations. The sponsors’ exit strategy will be through either a sale or permanent financing upon stabilization.
The interest-only, structured whole loan carries an initial term of three years, in addition to two extension options.
The property is in an area that houses over 25 life science and laboratory tenants in a 0.25-mile radius. This location within the Sorrento Mesa submarket is desirable for life science tenants given proximity to private research institutions including UC San Diego, Scripps Research, the Salk Institute, and the Sanford Burnham Presbyterian Medical Discovery Institute. The Sorrento Mesa area serves as the headquarter location for life science companies. San Diego is the third largest center of biotechnology-type research activity in North America. The area is home to over 1,500 life sciences companies and more than 80 independent and university-affiliated research institutes.
The sponsor is a joint venture between an institutional investor and a private owner and operator of life science real estate with 3,000,000 SF of assets under management.