JLL arranges major capitalization for Gattuso Development's new Philadelphia life sciences project
PHILADELPHIA, Dec. 19, 2022 /PRNewswire/ -- JLL's Capital Markets group announced today that it has arranged a $290 million construction loan that will allow project partners Gattuso Development Partners and Vigilant Holdings of New York to build a state-of-the-art research facility at 3201 Cuthbert Street, an 11-story life sciences development in the heart of Philadelphia's University City submarket.
The state-of-the-art building at 3201 Cuthbert Street will be the largest life sciences research and lab facility in the city
PHILADELPHIA, Dec. 19, 2022 /PRNewswire/ -- JLL's Capital Markets group announced today that it has arranged a $290 million construction loan that will allow project partners Gattuso Development Partners and Vigilant Holdings of New York to build a state-of-the-art research facility at 3201 Cuthbert Street, an 11-story life sciences development in the heart of Philadelphia's University City submarket.
Working on behalf of Gattuso and Vigilant, JLL secured the loan through Corebridge Financial, as well as an additional equity commitment through The Baupost Group.
Designed by world-renowned architect Robert A.M. Stern Architects, the LEED® Gold-certified building will be the largest life sciences research and lab facility in the city – featuring 519,647 square feet of wet lab / dry space, 11,908 square feet of street-level retail space and 137 underground parking stalls. Critical lab infrastructure will include lab-friendly column spacing, expanded floor-to-floor heights, an HVAC system designed specifically for lab research, best practice chemical storage space and ph neutralization capability, six enclosed loading docks and generous space for tenant equipment and vertical shaft infrastructure. SmartLabs and Drexel University have pre-leased 45% of the lab space. This will mark SmartLab's seventh location and first commitment to a market outside of San Francisco or Boston, demonstrating the strength of the Philadelphia life sciences market, which was ranked fifth in the nation in JLL's 2022 Life Sciences Lab Real Estate Outlook.
3201 Cuthbert St. benefits from its location on Drexel University's campus in University City, which is the epicenter of Philadelphia's life sciences market and a global hub for gene and cell therapy, a growing segment of the sector. University City spans 2.4 square miles and is home to one of the largest concentrations of health systems, teaching institutions, life sciences, biotech and pharmaceutical companies in the world.
"We appreciate the chance to work with the great team at JLL to complete the capital stack for this important project," said John Gattuso, Gattuso's President and co-founder. "We believe the project validates Philadelphia's emergence as a global hub for life sciences research, and we are excited to begin construction."
JLL's Capital Markets Debt and Equity Advisory teams were led by Senior Managing Directors Ryan Ade, Brett Segal and Christopher Peck.
"University City stands within the top tier of national life sciences markets, and similar to other premier markets, is experiencing a shortage of supply caused by high barriers to development," Ade and Segal said. "3201 Cuthbert has already been well-received by the market with 45% of the space already leased. Given the appeal of the market, the preeminence of the planned development and the immediate access to research institutions at Drexel and The University of Pennsylvania, we expect interest in the project to attract best-in-class tenancy."
JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales 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.
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About Gattuso Development Partners
Gattuso Development Partners is a developer of exceptional, sustainable high-performance workplaces. Gattuso recognizes that the right work environment is the most critical asset a business can offer to attract, retain and inspire its employees and promote long term success. For more information, please visit: gattusodevelopmentpartners.com.
About Vigilant Holdings
Vigilant Holdings was founded in 2020 to acquire strategic and diversified assets across the United States with a specific focus on life sciences developments. The platform leverages nearly 70 years of combined real estate experience and relationships to capitalize transactions of varying sizes and risk profiles. Led and co-founded by David Fowler and based in New York, Vigilant currently owns over 1 million square feet of life sciences developments on both the east and west coasts.
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 $19.4 billion, operations in over 80 countries and a global workforce of more than 102,000 as of September 30, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
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