San Diego Commercial Real Estate; Keeping Current with an ever-changing market
Thoughts for the Month of February
“Throughout history, this country has owed an incredible debt to the men and women who have worn the cloth of our nation. This community park will be a tribute to their service and sacrifice. It will also be a beautiful gathering place on the bay for all San Diegans as well as visitors to our great city. Freedom Park will completely transform the Embarcadero, and all of us on Midway are excited to be part of it.” Terry Kraft, the USS Midway Museum’s president and CEO.
Biopharma conglomerate Johnson & Johnson recently announced it will buy San Diego-based Ambrx Biopharma for $2 billion to gain access to its promising pipeline of cancer therapies. J&J will buy the company for $28 per share in cash — about double Ambrx’s closing price at the time of sale. The transaction is expected to close in the first half of this year.
?San Diego based LPL Financial (Nasdaq: LPLA) has entered a definitive agreement to buy New York-based Atria Wealth Solutions, a move that will add $100 billion in assets under management and 2,400 advisers. The transaction was structured as an equity purchase with an upfront price of approximately $805 million. With earn-outs based on adviser retention, the deal’s price could rise by a maximum $230 million for a maximum total of $1.04 billion. LPL said it anticipates financing the transaction with a combination of cash and debt. LPL is the nation’s largest independent broker-dealer and has their HQ in San Diego's UTC neighborhood.
In June, Illumina's leadership announced plans to cut costs through layoffs and reducing its office footprint in San Diego and the Bay Area. Illumina reported in an SEC filing in November that it incurred charges of approximately $54 million related to the exit of its i3 campus in UTC.? The company’s cost-saving measures and refocused strategy followed the resignation of its longtime CEO, Francis deSouza. In the past year, Illumina has dealt with the fallout of its controversial $7 billion acquisition of Grail, which ultimately unraveled.
The i3 campus — a three-building, 316,000-square-foot office complex at 4775-4795 Executive Drive in University City — was billed as a “work anywhere” office for employees. The prominent angular structure of concrete and glass off the I-805 freeway was built in 2017. It offered an open design with large windows, a gym and an on-site restaurant. The property is owned by LaSalle Investment Management and was valued at about $645 per square foot when it was purchased in 2019, according to data from real estate tracker CoStar.? Just south of the i3 campus off La Jolla Village Drive, Illumina occupies a cluster of six office buildings.
A San Francisco housing developer plans to build a 40-story apartment building in East Village that is far different from most of the recent downtown residential projects.? Revel, by Cresleigh, is aimed at middle-income tenants with monthly rents that Cresleigh Development Director Jeremy Lui said will be 10% to 20% below most other downtown market-rate projects and will include two-bedroom and three-bedroom apartments to appeal to families with children. “The vision for this project is to create urban homes for an urban workforce,” Lui said. “No other projects have specifically targeted the missing middle in downtown.” Most have either been subsidized projects for low-income tenants or so-called luxury apartments for high-income renters.? “We believe that downtown should be home to a broader swath of people, not just younger people,” Luis said. “It should encompass families and children. That ultimately should lead to a more diverse community.”
?Scripps Research scientists have developed an antibody that can block the effects of lethal toxins in the venoms of a wide variety of snakes found throughout Africa, Asia and Australia. The antibody, which protected mice from the normally deadly venom of snakes including black mambas and king cobras, is described on Feb. 21, 2024, in Science Translational Medicine. ?The new research used forms of the toxins produced in the laboratory to screen billions of different human antibodies and identify one that can block the toxins’ activity. It represents a large step toward a universal antivenom that would be effective against the venom of all snakes.
The breadth of biotech firm 23andMe's hack earlier this year is far more serious than the company's originally reported 14,000 customers. It turns out data belonging to 6.9 million clients was compromised: Some 5.5 million that had the DNA Relatives feature enabled, along with another 1.4 million family tree profiles. Hackers used credential-stuffing tactics to get shared information about genetic relatives in those 14,000 accounts to access millions more, Bloomberg explains. 23andMe says it is informing those affected, and it is now requiring two-factor authentication to increase security.
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As part of the Port of San Diego and USS Midway Museum’s Freedom Park project, the Board of Port Commissioners has approved a proclamation of intention to designate nearly 10 acres of the Embarcadero as Freedom Park upon the transformation of Navy Pier into a park. Freedom Park is anticipated to open in 2028.
Beginning at the west end of Navy Pier and going around the Midway to the Bob Hope Memorial, Freedom Park will celebrate the region’s military history and tell the story of everyday heroes who served our country and preserved our freedoms. It will provide visitors with unique experiences on the waterfront with numerous public amenities, including a nature garden, memorials and monuments, play structures, seating and shading, and interpretive signage. The preliminary estimated cost for completion of Freedom Park at Navy Pier, which includes the headhouse demolition and structural improvements is currently approximately $65 million. Freedom Park at Navy Pier will be the largest veterans park on the West Coast.
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California is further expanding and upgrading its nation-leading firefighting fleet with seven new C-130H aircraft to protect people from wildfires, with the first of these planes expected to begin operations in the fall.
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Wow, great things coming to San Diego! These developments present fantastic opportunities for investors as well.
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