LOS ANGELES & DENVER--(BUSINESS WIRE)--A joint venture between Los Angeles-based HATCHspaces® and Denver-based health care developer NexCore Group has acquired their second development project together in the Los Angeles region. The 100,000 square foot building will be the first life science-focused new construction project of scale in the region. The development site at Pico and Sepulveda in West Los Angeles marks the third project the group has acquired together, including science-focused projects in Irvine, California and Boulder, Colorado.
“The greater Los Angeles market has matured to the point where large blocks of technically specific space is an immediate need,” says HATCHspaces® Co-Founder Allan Glass. “Most of our wet lab portfolio is at full capacity, and there are several large block tenants actively in the market.” Overall vacancy rates for life science space are hovering around 1.5% in the LA market. Glass continues, “We’ve had multiple major pharmaceutical and biotech companies reach out to us hoping to expand into LA from top clusters like San Francisco, San Diego, and Boston in order to tap into the deep and diverse pool of experienced talent already in the region.”
NexCore Chief Development Officer and Managing Partner Todd Varney says, “We have focused our efforts on delivering critical infrastructure to science and healthcare clusters that boast untapped innovation capacity. The Los Angeles region has continued the momentum that began well before the pandemic and has amplified its reach as an ecosystem.” The venture capital community has increased investment in the LA region over 60% since 2018, ranking fifth in the country. With fourteen well respected VCs actively invested in LA-based life science companies, representing over $800 million in direct investment, Varney says, “The HATCH/NexCore partnership is focused on delivering state-of-the art facilities to maintain that momentum.”
The project sits atop one of the most iconic intersections in the LA region and is adjacent to the Expo/Sepulveda Station of the Expo Line transit corridor. Connecting downtown Los Angeles with the Pacific Ocean, the Expo Line travels past academic, professional, and cultural institutions like the University of Southern California, the Los Angeles Coliseum and Exposition Park, Sony Studios, Bergamot Station Arts Complex, and the Santa Monica Pier. The light rail line has also captured the attention of and major investments from some of the most well-capitalized and highly valued entertainment and technology companies in the country, including Google, HBO, Apple, and Amazon.
“The City of Los Angeles and neighborhood stakeholders have shown tremendous forethought from a planning perspective,” adds HATCHspaces® Co-Founder Howard Kozloff. “Without the zoning overlays that were planned along key transit stops, it would have been difficult, if not impossible to find an opportunity to build new facilities that foster job creation along the transit corridor.” The new STEAM-focused building will foster continued growth between tech, AI, digital health, and life science companies along the transit corridor.
HATCHspaces® LLC is a Los Angeles-based real estate development platform focused on simplifying the process of scientific innovation by creating purpose-built life sciences facilities for companies emerging from academic and incubator networks. With properties in various regional submarkets, HATCHspaces’® mission is to deliver the life science community state-of-the-art lab facilities at varying scales, allowing regions to retain early-stage bioscience and biotechnology start-ups emerging from research environments.
NexCore Group LLC is a national healthcare real estate investment and development company that focuses on acquiring, developing, owning, and managing healthcare facilities including medical office buildings, wellness facilities, ambulatory surgery centers, single and multi-specialty physician buildings, life sciences facilities, senior living communities and transitional rehabilitation centers. NexCore partners with top healthcare systems, hospitals, physician groups, and assisted living, memory care, and post-acute care operators, and reputable institutional and high net worth investors to develop, acquire and own high quality assets that serve their communities through significant job creation and the provision of quality healthcare services. Since 2004, the NexCore team has developed and acquired over 13.9 million square feet of healthcare properties across the country and currently manages over $2.8 billion of healthcare facilities. The company has been recognized repeatedly as one of the Top Healthcare Real Estate Developers in the U.S. by Modern Healthcare and HREI. NexCore is headquartered in Denver, with regional offices in Chicago; Bethesda, Md.; Portland, Ore.; Dallas; Orlando, Fla.; Laguna Niguel, Calif.; and Indianapolis.
