Project at 2500 League Island Blvd. secures local and national investors, demonstrating city’s growing potential as a nationwide hub for cell and gene therapy
Responding to the skyrocketing demand for life sciences development, particularly for cell and gene therapy (CGT) research and manufacturing space, Gattuso Development Partners announced today that construction has begun on a 130,000-square-foot flex production cGMP facility at 2500 League Island Blvd. at The Navy Yard in Philadelphia, Pennsylvania.
The new building, which follows earlier Gattuso-led life sciences Navy Yard projects (from his days at Liberty Property Trust) including WuXi AppTec, Adaptimmune and most recently, Iovance Biotherapeutics, is the latest indication of the city’s emergence as a leader in the life sciences industry, particularly for CGT. The project’s financing also reflects this trend, as broker JLL announced today that it has secured financing for 2500 League Island Blvd. that includes support from local and national sources.
Working in partnership with Gattuso, JLL said that the new project includes construction financing from Citizens Bank as well as joint venture equity with Boston-based The Baupost Group.
“There is incredible demand for space, and companies are conducting national searches for new locations as this sector expands,” said John Gattuso, principal and founder of Gattuso Develoment Partners. “As a result, this facility is designed to help meet the pressing need for current Good Manufacturing Practices (cGMP) lab and production space that will allow this ecosystem to grow.”
“The evidence is clear that if we can meet the demand for cGMP lab and production space, Philadelphia can become a critical epicenter for an industry that many see as the future of modern medicine,” said JLL Managing Director Brett Segal. “Thanks to the research and innovation cultivated at Penn, Jefferson, Temple, Drexel and Children’s Hospital of Philadelphia, we are clearly positioned for significant growth in the years to come – if we can provide the research, lab and production space that the life sciences industry is demanding.”
Philadelphia offers a prime location to key hubs and transit nodes for the life sciences sector, including University City, Center City, the Philadelphia International Airport, NRG Station and Interstates 95 and 76. The surrounding submarket is home to leading life sciences companies and has access to Philadelphia’s innovation ecosystem, which boasts a top talent pool for biotech companies.
Designed by SITIO architects, 2500 League Island Blvd. is designed to address this challenge. It will offer 30’ clear heights ideal for flex/production/headquarters facilities, 14 loading bays and 360 surface parking spaces. The project is anticipated to deliver in fourth quarter 2022 and is targeting LEED Silver certification. In addition, 2500 League Island Blvd. can be subdivided to accommodate tenants from 30,000 square feet to 130,000 square feet.
The JLL Capital Markets team representing Gattuso Development Partners was led by Senior Managing Director Ryan Ade and Managing Director Brett Segal.
According to JLL’s 2021 Life Sciences Real Estate Outlook, Philadelphia is ranked within the top 10 life sciences markets within the U.S. and is experiencing rapid growth fueled by new entrants to the life sciences space and steady increases in both NIH and venture capital funding.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
About Gattuso Development Partners
Gattuso Development Partners is a developer of exceptional, sustainable high-performance workplaces. The Gattuso team has played a key role in reshaping the Philadelphia skyline and revitalizing its urban landscape. Sharing a history as leaders of the urban development group at Liberty Property Trust, the company’s work represents more than $3 billion of development on projects like the extraordinary Comcast Technology Center and the Comcast Center, in Center City, Philadelphia. In addition, Gattuso’s work includes the redevelopment of the Philadelphia Navy Yard, considered the most successful redevelopment of a former military facility anywhere in the country; the Camden Waterfront; and more than 50 office/flex buildings across the nation. To learn more, please visit: gattusodevelopmentpartners.com.
About The Baupost Group
The Baupost Group is a Boston-based investment manager with a long-term, value-oriented approach. Since 1982, the firm has been thoughtfully stewarding and compounding capital on behalf of families, foundations and endowments, as well as employees who collectively are the firm’s largest client. Baupost manages roughly $31 billion with a broad and flexible charter, investing in a wide range of asset classes, including significant holdings in publicly traded debt and equity securities, private debt, real estate, and private equity. CEO and Portfolio Manager Seth Klarman has overseen Baupost’s investments from the company’s inception.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a
global workforce more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
