The project thread is locked but Funding Secured for 2300 Market!
https://www.bizjournals.com/philadel...00-market.html
Breakthrough Properties has secured a $130 million construction loan for the development of an eight-story life sciences building at 2300 Market St.
Construction on the project is already underway, and the 223,000-square-foot building is expected to be delivered in mid-2024 for tenants to fit out their space.
Breakthrough Properties, a joint venture between New York real estate firm Tishman Speyer and Los Angeles life sciences investor Bellco Capital, bought the site along the 2300 block of Market Street as three separate properties in December 2021.
“The fact that we were able to secure a construction loan in this environment really speaks to the strength of our platform and the strength of the project,” said Joe Traynor, senior director of development for Breakthrough Properties. “The fact it’s a well-located Class A project, the lender was really willing to lend on the project. And [that speaks to] the strength of Philadelphia as well.”
Breakthrough worked with Philadelphia-based D2 Capital Advisors to secure the loan from Corebridge Financial of Houston.
The new life sciences building will have flexible lab zones that can accommodate various research uses, as well as a café, lounge, fitness center and amenities tailored to biotech companies.
The site was home to three existing buildings, including the culinary school for the Arts Institute of Philadelphia, when Breakthrough acquired the properties. The project will preserve the structure and façade of the three-story brick building on the corner of 23rd and Market streets that was previously occupied by the culinary school. Breakthrough is also preserving the white terracotta façade of an adjacent four-story building. A three-story building on the west side of the site was fully demolished.
The new life sciences building will have flexible lab zones that can accommodate various research uses, as well as a café, lounge, fitness center and amenities tailored to biotech companies.
The site was home to three existing buildings, including the culinary school for the Arts Institute of Philadelphia, when Breakthrough acquired the properties. The project will preserve the structure and façade of the three-story brick building on the corner of 23rd and Market streets that was previously occupied by the culinary school. Breakthrough is also preserving the white terracotta façade of an adjacent four-story building. A three-story building on the west side of the site was fully demolished.
Breakthrough Properties specializes solely in life sciences development and has a dedicated scientific operations team, which helps design and operate labs from an end user’s perspective. Traynor said that’s a differentiator with new buildings, like 2300 Market, which he called a “true, first-class life science building.”
The building is being built on spec and Breakthrough is marketing the project to prospective tenants. Life sciences companies tend to need space on a faster timeline than other sectors so it’s common to sign tenants closer to when the space is ready.
Breakthrough also owns several properties in Boston and San Diego, two other top-tier life sciences markets. Traynor said Breakthrough’s philosophy is to operate the lab space for the long term. While 2300 Market is the company’s first project in Philadelphia, more could be coming in the future.
“We don’t go into a market for one project, one building,” Traynor said. “We acquired, developed and will own and operate this building. So we’ll be an operator in the market, not just a one-off developer. The intent with every market we’re in is to be in there with multiple projects.”
KieranTimberlake is the project’s architect and the construction manager is Hunter Roberts. Cushman & Wakefield is the leasing agent for the project.
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