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TROPHY SINGLE-TENANT BIOTECH OFFICE INVESTMENT OPPORTUNITY
100% NNN Leased to Boston Scientific Corporation Through 2026
N E U R O M O D U L A T I O N C E N T E Rat Southern Cal i fornia Innovat ion Park
25155 RYE CANYON LOOP • VALENCIA, CA 91355
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The Offering
NGKF CAPITAL MARKETS, AS EXCLUSIVE
ADVISOR, IS PLEASED TO PRESENT THE
EXCLUSIVE OPPORTUNITY TO ACQUIRE
THE FEE-SIMPLE INTEREST IN 25155 RYE
CANYON LOOP (BOSTON SCIENTIFIC
NEUROMODULATION CENTER AT
SOUTHERN CALIFORNIA INNOVATION PARK)
(THE PROPERTY), A 180,415-SQUARE-FOOT
TROPHY BIOTECH OFFICE BUILDING IN
VALENCIA, CALIFORNIA.
The Property is 100% leased to Boston Scientific Corporation (Boston Scientific) (NYSE: BSX; S&P: BBB-) on a NNN basis through December 2026 with 3% annual rental increases and one, five-year option to extend. This leading medical device company boasts investment-grade credit and a market cap of more than $33.7 billion, making Boston Scientific Neuromodulation Center a safe and secure investment opportunity with the benefit of long-term value appreciation.
Completed in 2006, this Class A, mission-critical, biotech facility is nestled within the newly revamped 17-building, 160-acre Southern California Innovation Park (previously known as Mann Biomedical Park), which has long been an icon within Southern California’s 20.1-million-square-foot life science market. Southern California Innovation Park offers tenants a prestigious corporate address within a secure, park-like campus environment.
This brochure was produced by NGKF Capital Markets in its role as advisor for the property owner. Boston Scientific is a tenant at the property, and makes no representations or warranties with respect thereto and is not responsible for the accuracy of the information contained herein.
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25155 RYE CANYON LOOP | VALENCIA, CA 91355
BOSTON SCIENTIFIC CORPORATION
Property Summary
Lease Summary
180,415Property Size (RSF)
Dec-26Lease Expiration
10-YearLease term with one, five-year option to extend
±3.0%Annual Escalations
NNNLease Type
2006Year Built
2Stories
40.53Site Area (Acres)
100%Leased
528Surface Parking Spaces (3.0/1,000 RSF)
BBB-Investment Grade S&P Credit Rating
$62.0MPrice
11.6%5-Year Leveraged Cash-on Cash Return
6.3%Year 1 Cap Rate
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Investment HighlightsMISSION-CRITICAL HEADQUARTERS BUILDING WITH COMMITTED TENANCY
The Property was originally developed as a build-to-suit for Boston Scientific’s Neuromodulation Division and serves as its global headquarters. The division grew sales 12% in 2016 and now boasts number one market share in the industry. Boston Scientific has invested significant capital in the space and, in January 2017, demonstrated its commitment to the Park by signing a new ten-year lease in two separate buildings, for a total of 343,084 square feet with an improvement allowance of $3.0 million.
INVESTMENT-GRADE INCOME STREAM WITH UPSIDE POTENTIAL
The Property is 100% leased to Boston Scientific through December 2026 on a NNN basis with one five-year option to extend. The Property provides investors with a stable income stream with 3% annual increases and upside in marking the below market rents to market upon expiration. Boston Scientific is a leading producer of medical supplies and devices used to diagnose and treat conditions in a variety of medical fields. The company is publicly traded with a market cap of $37.7 billion and an investment grade credit rating.
DISCOUNT TO REPLACEMENT COST
Due to the specialized nature of the improvements and increased regulation to develop comparable facilities, the Property provides investors with the opportunity to acquire an institutional-quality, mission-critical life science asset at a significant discount to replacement cost, which is estimated to be in excess of $500 per square foot.
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Property HighlightsTROPHY LIFE SCIENCE IMPROVEMENTS
Designed by HPA, Inc. and maintained to the highest biomedical institutional standards, the Property provides excellent corporate identity, substantial physical infrastructure and abundant parking (3:1,000 RSF). Specialized design features include a ±18,000 square foot ISO-7 cleanroom, test labs, conference facilities, sterilization controls, raised flooring, secure storage, and concrete construction that supports visually appealing sleek interior finishes. Boston Scientific has deployed significant proprietary capital to improve the Property to its specifications, which augments the mission critical nature of the offering.
THIS MISSION-CRITICAL HEADQUARTERS FACILITY
PROVIDES BOSTON SCIENTIFIC WITH THE ESSENTIAL
COMBINATION OF STATE-OF-THE-ART LAB, OFFICE AND MANUFACTURING SPACE.
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Market HighlightsNEWLY IMPROVED INNOVATION CAMPUS
Boston Scientific Neuromodulation Center is located within the newly renovated Southern California Innovation Park. The Park consists of 17 office, technology and industrial buildings totaling 612,075 square feet across 160 acres. Existing ownership has an established development plan for the Park to accommodate tenant expansion. The design of the campus takes full advantage of the central location, natural beauty, amenities and open space to create a vibrant work environment that enhances both commerce and community. Onsite amenities include a fitness center, jogging trail, basketball and volleyball courts, a helipad and a secure guard gate entrance. Southern California Innovation Park has attracted a diverse group of established companies across a variety of industries.
SOUTHERN CALIFORNIA’S BOOMING LIFE SCIENCE INDUSTRY
California is the number one life science employer in the nation (287,000 employees) and is recognized as the nation’s top state for venture capital investment ($4.4B), highest recipient of NIH grants ($3.4B), and largest number of top universities (11). Southern California has become the dominant region for life science companies, employing 57% of the state’s workforce–half of which is located in the Los Angeles Metro area. New, entrepreneurial companies are becoming more prevalent in Los Angeles County specifically, a trend that could bode well for the region’s continued growth.
Jogging Trail
N E U R O M O D U L A T I O N C E N T E R
PROPOSED OFFICE(182,000 SF)
PROPOSED OFFICE(100,000 SF)
PROPOSED DAYCARE
PROPOSED OFFICE(100,000 SF)
Onsite Amenities
GymJogging TrailBasketball & Volleyball CourtsDaycare (pending)
612,075 RSF Existing Developmentacross 17 buildings
±660,000 RSF Proposed Developmentacross nine buildings
Basketball & Volleyball
Courts
Gym
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SURGING LOCAL MARKET FUNDAMENTALS
The 3.17-million-square-foot Valencia office market continues to rapidly rebound with a Class A vacancy rate of 5.9% and Class A average asking lease rate of $2.39 PSF in 1Q2017. Valencia has become a hub for the life science industry with over 15 biomedical companies clustered in the submarket today. The vacancy rate for life science buildings in the Santa Clarita Valley is 0% and, despite limited inventory, current lab space construction is minimal, suggesting that the supply should remain tight in the near term.
HIGHLY DESIRABLE COMMUNITY
The Santa Clarita Valley’s clean and amenity-rich environment, award-winning schools, highly skilled workforce and employment opportunities are attracting employers and residents to the region. The city has been publicly recognized as the Most Business Friendly City in Los Angeles (LAEDC, 2016), One of America’s Best Cities to Live (24/7 Wall Street, 2015) and one of the safest cities in the United States (FBI, 2016). Santa Clarita’s population has grown by nearly 35% over the past decade to more than 278,000 and expected to grow due to a wide range of housing developments (21,000 homes proposed by Newhall Ranch) and new job creation.
EXCEPTIONAL REGIONAL ACCESS AND VISIBILITY
Boston Scientific Neuromodulation Center is located just minutes from the I-5 Freeway in Valencia, providing direct freeway access without freeway visibility for the Park’s more security-conscious tenants. This strategic location puts the Property within 20 minutes of eight major freeways and only 25 minutes from the Burbank Airport and 40 minutes from LAX.
PROPOSED OFFICE(84,000 SF)
PROPOSED STUDIO SPACE(18,000 SF)
PROPOSED STUDIO SPACE(87,000 SF)
PROPOSED OFFICE(46,450 SF)PROPOSED OFFICE
(51,284 SF)
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The broker for a purchaser of the property shall be entitled to receive a real estate commission only in the event that broker and the property’s owner execute a written commission agreement, containing the manner of calculation of that commission and all conditions to its payment, and the satisfaction of those conditions. Absent a written agreement to the contrary between that broker and NGKF, that broker shall not look to NGKF for payment of such a commission or any other compensation.
Although all information furnished regarding property for sale, lease, or financing has been obtained from sources deemed to be reliable, that information has not been verified by NGKF and no express representation is made nor is any to be implied as to the accuracy thereof. That information is subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice and to any special conditions imposed by NGKF’s client.
This brochure was produced by NGKF Capital Markets in its role as advisor for the property owner. Boston Scientific is a tenant at the property, and makes no representations or warranties with respect thereto and is not responsible for the accuracy of the information contained herein.
Corporate License #01355491
INVESTMENT CONTACTS
LOCAL MARKET CONTACTS
FINANCING CONTACTS
Laura StummManaging Director
T +1 310 491 [email protected]
CA RE #01914207
Kevin ShannonPresident, West Coast Capital Markets
T +1 310 491 [email protected]
CA RE #00836549
Craig PetersExecutive Vice President
T +1 818 907 4616 [email protected]
CA RE #00906542
David MilestoneExecutive Managing Director
+1 310 491 [email protected]
CA RE #01515842
Ken WhiteExecutive Managing Director
T +1 310 491 [email protected]
CA RE #01788506
Doug Sonderegger Executive Vice President
T +1 818 907 4607 [email protected]
CA RE #00827505
Brett GreenManaging Director
T +1 310 491 [email protected]
CA RE #01892016
N E U R O M O D U L A T I O N C E N T E Rat Southern Cal i fornia Innovat ion Park
