Done Deals: JLL arranges $310 million construction loan for first all-electric life sciences campus in California

Lillian Roos

SAN FRANCISCO, CA – JLL’s Capital Markets group announced today that it arranged a $310 million construction loan for the development of Avia Labs at Millbrae Station, a best-in-class life sciences development totaling 315,000 square feet at the Bart and Caltrain station in Millbrae, California.

The project will be the first all-electric life sciences development in California.

Adam Sichol

JLL worked on behalf of the borrower, Longfellow Real Estate Partners, to secure the loan through Otera Capital, a leader in commercial real estate debt.

“The Bay Area remains one of the crucial global hubs for life science innovation within our international portfolio," said Longfellow Co-Founder & CEO Adam Sichol

Jordan Angel

"As we continue to expand our presence in the region, we look forward to delivering ground-up projects that are built to accommodate the robust requirements of our tenants.

“Avia Labs will not only provide top-quality lab and office space but reflect Longfellow’s commitment to environmental sustainability across our portfolio.”

Longfellow broke ground on Avia Labs on March 1, 2023. The six-story, Class A building is targeting LEED Gold and Fitwel certifications and emphasizes both energy efficiency and quality of life for tenants.

The on-site amenity package includes a fitness center, a public café open to the community, large conference spaces, bike storage, two levels of underground parking and a large terrace with city and mountain views.

Pat Aslanian

The property is positioned on 2.1 acres at 210 Adrian Rd. in Millbrae, which is in the North County submarket of the Mid-Peninsula.

The North County submarket is extremely undersupplied with a vacancy rate of 1.8% as of 4Q 2022, positioning the project well for lease-up.

In addition, Avia Labs is directly adjacent to the Millbrae BART and CalTrain station and in close proximity to the world-class research institutions at Stanford, Berkeley and UCSF.

According to JLL’s 2022 Life Sciences Lab Real Estate Outlook, emerging markets such as Millbrae are planting the seeds for long-term opportunities for life sciences companies, investors and developers.

Avia Labs at Millbrae Station, California

The JLL Capital Markets Debt Advisory team representing the borrower was led by Silicon Valley based Senior Managing Director Jordan Angel, Director Lillian Roos and Analyst Pat Aslanian.

“Millbrae is the only transit station in the greater Bay Area where both BART and CalTrain come together in one station, providing an incredible opportunity for tenants to have public transit options to the East Bay, San Francisco, the Peninsula and Greater Silicon Valley, while being in the epicenter of one of the top life sciences markets in the world,” Angel added.

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Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

CONTACT:

Kristen Murphy

Director, Public Relations, Americas

JLL

One Post Office Square, Suite 3500

Boston, MA 02109

T +1 617 848 1572

M +1 617 543 4873

Kristen.Murphy@am.jll.com

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