Nuveen Loans $265 Million for Philadelphia Life Science Building, Project Aims To Build 200,000 Square Feet of Lab Space
Pennsylvania-based Keystone Development and Investment has secured a strong endorsement in the form of a loan from an affiliate of insurance giant Teachers Insurance and Annuity Association of America. TIAA’s Nuveen Real Estate agreed to provide Keystone with a $265.2 million loan to expand its life science conversion of The Curtis in Philadelphia and to construct the infrastructure required for lab space. The proceeds of Nuveen’s loans are intended to provide sufficient capital to convert the next 200,000 square feet of space at The Curtis to research laboratories over the next several years.
BioLabs Expands in Philadelphia
TIAA’s Nuveen Real Estate financing comes on the heels last month of Keystone signing BioLabs to The Curtis for its 53,000-square foot Philadelphia incubator and graduate suites facility. BioLabs offers emerging life sciences companies a network of shared lab and office facilities. Currently occupying 23,378 square feet at the 912,245-square-foot mixed-use property, BioLabs will expand by 30,151 square feet, totaling 53,529 square feet at the property. BioLabs’ new lease will commence early 2023. In the past two years, Keystone has spent over $70 million in converting 200,000 square feet of traditional office space at The Curtis into labs. Keystone is looking to convert another 300,000 square feet of traditional office to life science space as well.
Gattuso, Drexel To Develop 11-Story, 500,000 Square Foot Life Science Building in Philadelphia
Gattuso Development Partners is partnering with Drexel University to build an 11-story, 500,000-square-foot life science research and laboratory facility on the school’s campus in Philadelphia’s University City area, slated to open Fall 2024. Gattuso’s building will be located at 3201 Cuthberg St., adjacent to the historic Armory and leased from Drexel. Drexel plans to lease about 60,000 square feet of the building for academic and research uses. The university will host its core research and business development operations, as well as labs that will be used for research space and academic programs within the Drexel community, at the new space. “The demand for life science development continues to hold incredible potential for economic growth throughout the city and region,” John Gattuso, co-founder and CEO of the namesake company, said in the release. “We see the Drexel project as a catalyst for that growth, which will continue to leverage new private investment and generate jobs as it anchors the next great wave of life sciences development.”
Future Bioscience Growth in Philly
University City is continuing to look at developing more life science space. Spark Therapeutics is planning to build a $575 million, 500,000-square-foot gene therapy innovation center at Drexel’s campus at 30th and Chestnut streets through a 99-year ground lease. Stay tuned to this space for more information at a later date…
By Mark Heschmeyer, CoStar News