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Intersection Campus: BioTech Campus In Texas By Alexandria Real Estate


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2 hours ago, Lux said:

In mid 2021, Alexandria Real Estate Equities, Inc. (ARE) executive chairman Joel Marcus likened the current state of Houston commercial life science to that of NYC 20 years ago.

“Houston's a little like New York used to be. Maybe it's the closest because they have multiple institutions. They do have a location now in Texas Medical Center which they're trying to coalesce around those institutions.

The reality though is in Houston right now, there are not many scientists or academicians or political people who have any experience in translating science. And you really need that. I mean, the Bob Langers of the world out of MIT. Literally none of those exist in Houston. Houston's got world-class clinical, that's really their thing. But there are no rock star scientists in the sense of not many Nobel Prize winners or people like that. That doesn't mean there couldn't be over the next generation. And there's almost no risk capital. Even though there's oil, that industry's taking it on the chin. And there's very little management and talent that you can hire. So Houston would still be extremely early on, where New York was 20 years ago.”

In the company’s recent Q4 earnings call, an analyst’s question on rumored Texas market entry yielded the following response from Mr. Marcus:

“And I think the final market you asked about was Texas. So for a variety of legal reasons, I can't say anything until the first quarter, and we'll talk about that. But much like New York, when we started in New York, we really spent before we opened the Alexandria Center for Life Science in 2010, we had started an effort in New York back in 2001 as part of Sandy Wild's effort to bring commercial life science to New York City, where none literally existed. 

And I would say the same is true of Texas. Literally, no real presence of commercial life science down there today, but our intent is to create a market and really bring early-stage commercial life science to Texas, much like we did in New York. So with that, hopefully, long-winded answer.”

Connecting the dots, one would surmise that ARE is likely preparing to enter the Houston life sciences CRE arena.  Whether this would be through participation in currently emerging campuses (TMC3, Levit Green) or through a new build is purely speculative at present — technically, geographic placement within the state is less than certain as well.  Regardless, ARE’s Lone Star moves signal a desire from a major player to get in early and shape the Texas commercial biosciences ecosystem.  Positive news for Texas (and hopefully Houston) life sciences CRE!

Well that second quote is much more promising than the first (which I guess came from Alexandria Chairman Joel Marcus On Emerging Cities, Megacampuses And 'Hucksters' (bisnow.com)).  If their market outlook did change between summer 2021 and now, well the TMC must be doing something right.

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1 hour ago, mattyt36 said:

Well that second quote is much more promising than the first (which I guess came from Alexandria Chairman Joel Marcus On Emerging Cities, Megacampuses And 'Hucksters' (bisnow.com)).  If their market outlook did change between summer 2021 and now, well the TMC must be doing something right.

According to the beginning of this article, which is behind a paywall, they just announced the purchase of a "nearly 1 million SF" biotech park in Texas for $402 MM. That sounds like it could be Pegasus Park. It looks like they have an office in Dallas, but not in Houston.

https://www.bisnow.com/national/news/life-sciences/alexandria-earnings-joel-marcus-111721

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22 minutes ago, H-Town Man said:

According to the beginning of this article, which is behind a paywall, they just announced the purchase of a "nearly 1 million SF" biotech park in Texas for $402 MM. That sounds like it could be Pegasus Park. It looks like they have an office in Dallas, but not in Houston.

https://www.bisnow.com/national/news/life-sciences/alexandria-earnings-joel-marcus-111721

Well that's certainly material and changes everything.

Thanks.

(Incidentally, though, it's not a paywall, at least not for me . . . it's a free registration.)

It's labeled here as a pending "Intersection Campus."

https://investor.are.com/files/doc_presentation/2022/01/4Q21-Release-only.pdf

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1 hour ago, H-Town Man said:

According to the beginning of this article, which is behind a paywall, they just announced the purchase of a "nearly 1 million SF" biotech park in Texas for $402 MM. That sounds like it could be Pegasus Park. It looks like they have an office in Dallas, but not in Houston.

https://www.bisnow.com/national/news/life-sciences/alexandria-earnings-joel-marcus-111721

It would be a bit of a stretch to call Pegasus Park "nearly 1 million SF".

Edited by Houston19514
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6 minutes ago, Houston19514 said:

It would be a bit of a stretch to call Pegasus Park "nearly 1 million SF".

The website says it is over 750,000 SF. The document that mattyt posted says that the total SF amount includes "Future Development/Redevelopment." So it could be them. The total figure it gives is 998,304. Do we know of other campuses around Texas that could fit the description? What are the projected sizes of Levit Green and TMC3?

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27 minutes ago, H-Town Man said:

The website says it is over 750,000 SF. The document that mattyt posted says that the total SF amount includes "Future Development/Redevelopment." So it could be them. The total figure it gives is 998,304. Do we know of other campuses around Texas that could fit the description? What are the projected sizes of Levit Green and TMC3?

Perhaps so.  But if that's what it is, it doesn't seem very noteworthy.  Just a change of ownership of an existing biotech campus. Hopefully, it's in Houston, but for the sake of Texas, wherever it is in Texas, I hope it's a new biotech campus, not just a change of ownership of an existing one.

FWIW, Levit Green's website says 4 Million square feet (and pretty unlikely Hines would be selling at this stage).  TMC3 totals 5 Million (and even less likely to be sold). 

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42 minutes ago, Houston19514 said:

Perhaps so.  But if that's what it is, it doesn't seem very noteworthy.  Just a change of ownership of an existing biotech campus. Hopefully, it's in Houston, but for the sake of Texas, wherever it is in Texas, I hope it's a new biotech campus, not just a change of ownership of an existing one.

FWIW, Levit Green's website says 4 Million square feet (and pretty unlikely Hines would be selling at this stage).  TMC3 totals 5 Million (and even less likely to be sold). 

Well, it represents an investment of outside capital into biotech industry within the state. Somewhat noteworthy, and I'd like to know where it was. But I'm not going to lose sleep over it.

 

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5 minutes ago, H-Town Man said:

Well, it represents an investment of outside capital into biotech industry within the state. Somewhat noteworthy, and I'd like to know where it was. But I'm not going to lose sleep over it.

 

I too am looking forward to learning where this investment was, but to be clear, this is a real estate developer/investor  focused on the life science industry.  They are not investing directly in biotech. 

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On 2/4/2022 at 1:31 PM, H-Town Man said:

The website says it is over 750,000 SF. The document that mattyt posted says that the total SF amount includes "Future Development/Redevelopment." So it could be them. The total figure it gives is 998,304. Do we know of other campuses around Texas that could fit the description? What are the projected sizes of Levit Green and TMC3?

The website says the campus has 9 properties.

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MD Anderson is selling an old Research Campus in Smithville, TX that has 9 buildings.

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  • The title was changed to Intersection Campus: BioTech Campus In Texas By Alexandria Real Estate
  • 2 months later...
Posted (edited)

Has anyone followed up on this or heard anything more?  I had expected there to be more information by now, but I haven't been able to find anything.

Edit:  I found some info on the lack of info...  😉

In the 1st Quarter 2022 Earnings Call (on April 26), the company responded to a question about where they went in Texas:  "With respect to Texas, we’re still under a series of transactions. So I’m unable legally to comment on that, but I do hope that, at the next call, I said that last call, but we’re still in pending transaction. But hopefully, we’ll be able to give you color on the next call".

So I guess we'll have to wait another 3 months.

Edited by Houston19514
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