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Sunday, Dec 3, 2023

Alloy Converts Offices to Labs

REAL ESTATE: Sorrento Valley Park Now 'Turnkey' Lab Space

Alloy Properties, a national developer of life science property, has entered the San Diego market with the conversion of a three-building office complex in Sorrento Mesa.

One of the three buildings in the Elements complex is fully leased to American Specialty Health at 1021 Wateridge Circle, but the remaining two at 10201-10241 Wateridge Circle are available for lease, said Tony Russell, managing director of JLL, which is handling the lease.

Tony Russell
Managing Director

“It’s turnkey-ready lab space that just delivered,” Russell said.

Formed in 2020 by TPR Real Estate Partners, Alloy acquired the property prior to the COVID pandemic with plans to convert it to life science. Ironically, the pandemic worked to Alloy’s advantage, Russell said.

When the pandemic hit, Alloy offered to terminate leases of the office tenants in the buildings, allowing Alloy to get to work on the renovation sooner than it might have, Russell said.

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The tenants benefitted because they no longer needed the space.

Alloy declined to say what the renovation costs, but the work involved taking two of the buildings down to shell condition and completely redoing the interiors.

To make the buildings suitable for lab use, freight elevators were added to the exterior, then enclosed so the additions would blend in with the rest of the buildings.

The exteriors that had been a purple slate color, were repainted gray.

An outdoor/indoor courtyard and amphitheater, with seating for 200 people was added along with a small café in a separate building about half the size of a shipping container, Russell said.

“There used to be a water feature there. They removed that water feature and converted this outdoor courtyard into an amphitheater,” Russell said. A 3,500-square-foot gym was also built on the ground floor of 10241 Wateridge Circle with bi-folding doors, so it opens to the exterior.

Room to Expand

The two buildings that are available have large floor plates capable of accommodating tenants who need from 2,000  square feet to 6,000 square feet, Russell said. Most of the floors have balconies.

There’s also an adjacent parcel of vacant land that could be developed into a 170,000-square-foot life science building.

“They (Alloy) don’t have any plans to build at this time. It would be an expansion opportunity,” Russell said.

The lower levels of the two buildings that are available are ready for someone to move in and get to work immediately, Russell said. The two top floors were left in shell condition.

“The three buildings are connected on the third level by two bridges that connect all the buildings together,” Russell said.

Alloy Properties

Founded: 2020
Headquarters: Fort Worth
Director: Alicia Hinds
Business: life science real estate developer
Employees: 10+
Website: www.alloyproperties.com
Contact (TPG Real Estate Partners): 817-871-4000
Notable: Alloy Properties is a national life sciences platform formed by TPG Real Estate Partners in the spring of 2020 that focuses on investing in life sciences and innovation campuses in the major life science markets, including Boston, Raleigh-Durham, San Diego, Seattle and Atlanta. The platform focuses on acquiring office and R&D campuses that can be converted into best-in-class facilities for life science, biotech and innovation.


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