Success Stories

Shire Regenerative Medicine

San Diego, CA
Phase 1 - 250,000 SF / Up to 800,000 SF
Cresa San Diego
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Client Objectives

Advanced Biohealing (ABH) needed to substantially increase production of its bioengineered skin substitute, Dermagraft, in order to seize global market share of the FDA approved diabetic foot ulcers treatment. In addition to maintaining the existing manufacturing site in Torrey Pines, the construction of a second much larger site was required to accommodate the desired growth. The new site would encompass a new office headquarters, manufacturing, distribution and R&D wet lab space. During the site selection process, ABH was acquired by Shire Regenerative Medicine, a European pharmaceutical giant who understood the company’s potential in the regenerative medicine arena.

Cresa Team Members

Results

After an in depth scouring of the preferred geography within San Diego County, Cresa identified several “brownfield” opportunities and “greenfield” build to suit opportunities that were worthy of further investigation. The Cresa team orchestrated a healthy competition among several REITs, each having the desire, sufficient knowledge and capital to successfully compete for a transaction with a large life science user. This competition ultimately produced extremely aggressive economics, in the form of a below market rent constant and an above market landlord sponsored capital contribution. The site that was ultimately selected was not an active listing and was identified by Cresa because it made sense with respect to location, size, zoning and its ability to accommodate pharmaceutical manufacturing. When it became apparent that a 20 acre site was not sufficient to accommodate the long term space requirements, an additional off-market site nearby was identified and Cresa persuaded the owner to scuttle its development plans and sell the land in order for the ABH transaction to move forward.

The occupancy structure eventually evolved into a long term ground lease of the 31 acre site owned by BioMed Realty Partners (BMR), with Shire self-developing up to approximately 800,000 square feet in numerous phases. The first phase is expected to be completed and operational by mid-2014.

Cresa’s local relationships and knowledge, negotiating strategy and large transaction experience created a win–win solution for Shire and BMR. The new headquarters/manufacturing facility will generate substantial revenue growth for Shire through sales of Dermagraft and other bioengineered products manufactured at this site for years to come.

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