IRVINE, Calif. and SAN FRANCISCO, Nov. 1,
2016 /PRNewswire/ -- HCP (NYSE:HCP) announced today
that it will break ground on an additional two buildings
constituting the third phase of The Cove at Oyster Point ("The
Cove"), its newest life science development located in the
epicenter of South San Francisco's
life science cluster.
"We are extremely pleased with the leasing velocity through the
first two phases of The Cove, which started construction in the
first quarter of 2015. We are now 62 percent leased overall
and excited to build upon our momentum by initiating Phase III, the
next logical step in the development, to provide much needed
expansion space for the South San
Francisco life science community," said Jon Bergschneider, Executive Vice President of
HCP Life Science Estates.
The Cove is the first new multi-tenant life science development
in South San Francisco in over a
decade and the only mixed use development of its kind in the Bay
Area. When complete, Phase III of The Cove will add two new
Class A buildings totaling approximately 336,000 square feet.
Construction will commence early next year with planned
deliveries throughout the second half of 2018. A future
fourth phase of the project will add a seventh and final 165,000
square foot building.
"With overall vacancy below 3 percent and a continued maturation
of the life science industry, the number of companies interested in
a new ground up development with the quality and scale The Cove
offers has grown significantly," said Chris
Jacobs of CBRE Group, Inc.
The first phase of The Cove, which consists of two buildings
totaling 247,000 square feet, was completed in the second half of
2016 and is currently 73 percent leased. Anchor tenants
Denali Therapeutics and CytomX Therapeutics commenced occupancy in
August and October of 2016, respectively. Additionally,
Foundry & Lux, HCP's 30,000 square foot amenity center
developed in partnership with the Bon Appétit Management Company,
opened to the public in October 2016. The innovative
restaurant concept includes a café for morning coffee, juices, and
lighter fare; a large market hall offering a wide array of lunch
options; and an evening lounge with a wood burning pizza oven, bar,
bowling lanes, pool table, and outdoor fireplace seating in
addition to a state-of-the-art fitness center. Outdoor sport
courts, bocce ball and horseshoe pits are also part of this project
creating a hub where professionals from all phases of The Cove and
the greater South San Francisco
life science community can collaborate.
The second phase of The Cove, which is presently under
construction and 50 percent leased, consists of two buildings
totaling up to 230,000 square feet, a parking structure, and retail
space including a restaurant which will serve the project and
surrounding community. Occupancy of the second phase is
targeted to commence the fourth quarter of 2017 and will include
biopharmaceutical company AstraZeneca. The Cove also includes
an upscale boutique, business class hotel with an international
brand presently under construction and scheduled to open in
2017.
"The Cove has injected a new dynamic into the local market
offering an amenity rich, Class A environment catered to the way
today's life science companies work and interact," stated
Scott Bohn, Vice President of HCP
Life Science Estates.
"The quality of the project and the amenity package that The
Cove has delivered to South San
Francisco is a game changer. The feedback from the
market has been incredible and is driving significant interest,"
said Rick Friday of CBRE who along
with Chris Jacobs represents HCP on
the project leasing.
Upon completion, The Cove will be a 1 million square foot,
pre-certified LEED silver, fully integrated, waterfront life
science campus located on Oyster Point Boulevard in South San Francisco. The project will
consist of seven buildings ranging in size from 115,000 square feet
to 182,000 square feet in both single and multi-tenant building
configurations.
HCP has successfully delivered numerous life science
developments in South Francisco since the mid-1990s. HCP is
the largest life science property owner in the Bay Area with over
five million square feet, including over three million square feet
in South San Francisco. For
more information on The Cove, visit www.CoveSSF.com.
About HCP
HCP, Inc. is a fully integrated real estate investment trust
(REIT) that invests primarily in real estate serving the healthcare
industry in the United States. HCP
owns a large-scale portfolio diversified across multiple sectors,
led by senior housing, life science and medical office. Recognized
as a global leader in sustainability, HCP has been a publicly
traded company since 1985 and was the first healthcare REIT
selected to the S&P 500 index. For more information
regarding HCP, visit www.hcpi.com.
HCP Forward-Looking Statements
Statements in this release that are not historical factual
statements are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements include, among other things, statements regarding the
development of The Cove and HCP's anticipated outcomes, including
without limitation targeted occupancy and completion timing. All
forward-looking statements are made as of the date hereof, are not
guarantees of future performance and are subject to known and
unknown risks, uncertainties, assumptions and other factors — many
of which are out of HCP's and its management's control and
difficult to forecast — that could cause actual results to differ
materially from those set forth in or implied by such
forward-looking statements. These risks and uncertainties include
but are not limited to: HCP's ability to complete the development,
or portions thereof, in the contemplated timeframes or at all; the
risk that HCP may not be able to achieve the benefits of the
development, or any of them, within expected timeframes or at all,
or within expected cost projections; and other risks and
uncertainties described from time to time in HCP's Securities and
Exchange Commission filings. HCP cautions investors not to place
undue reliance on any forward-looking statements. HCP assumes no,
and hereby disclaims any, obligation to update any forward-looking
statements as a result of new information or new or future
developments, except as otherwise required by law.
Contacts
Jonathan M. Bergschneider
Executive Vice President – Life Science Estates
(650) 875-1004
jbergschneider@hcpi.com
Thomas M. Herzog
Executive Vice President and Chief Financial
Officer
(949) 407-0400
investorrelations@hcpi.com
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SOURCE HCP, Inc.