- Four New Research, Academic and Innovation Projects With Current and New University Relationships Including University of Pittsburghand Drexel University
- Establishes and Expands Knowledge Communities That Enable Ground-Breaking Research, Academic Medicine and Innovation
- Developments Now Approximate $0.9 Billion of Previously Announced $1.5 Billion Pipeline
- Expected 7+ Percent Unlevered Cash Yield at Stabilization and Openings in 2021-22
CHICAGO–(BUSINESS WIRE)– Ventas, Inc. (NYSE:VTR) announced today four new developments totaling approximately $0.8 billion in its university-based Research & Innovation (“R&I”) business, all in partnership with Wexford Science & Technology, LLC (“Wexford”), the leading developer of university-focused real estate solutions. These investments are part of the near-term $1.5 billion R&I pipeline (the “Pipeline”) of expected new projects previously announced by Ventas.
Pitt Immune Transplant & Therapy Center Phase I
These outstanding developments with leading institutions include: 1) creation of a research, academic medicine and innovation hub anchored by a new relationship with University of Pittsburgh to house ground-breaking immunotherapy research in collaboration with the University of Pittsburgh Medical Center (“UPMC”) and co-located with UPMC’s Shadyside Hospital; 2) a new development that expands the flourishing Philadelphia uCity Square Knowledge Community associated with the University of Pennsylvania; 3) also in uCity Square, a state of the art College of Nursing and Health Professionals for Drexel University; and 4) expansion of the vibrant Cortex Innovation Community associated with Washington University in St. Louis. The projects are 40 percent pre-leased and are expected to generate over a 7 percent cash yield, and over an 8 percent GAAP yield, upon stabilization.
Ventas has now announced projects totaling $0.9 billion of its Pipeline. With the previously announced development at Arizona State University, these projects:
- add 1.5 million square feet to Ventas’s R&I portfolio;
- are 40 percent pre-leased; and
- are expected to deliver an unlevered cash yield at stabilization of over 7 percent and an over 8 percent GAAP yield.
“We are excited to announce these outstanding new projects with existing and new university relationships, which are strong proof points of our exciting growth opportunity in the Research & Innovation segment,” said John Cobb, Ventas Executive Vice President and Chief Investment Officer. “With $0.9 billion of our $1.5 billion development pipeline announced, we look forward to bringing these projects to successful completion while we also work to make the balance of our near term pipeline a reality.”
“Ventas and Wexford are proud to partner with leading research universities, health systems, academic medical centers, life science companies and entrepreneurs in the creation of Knowledge Communities and innovation hubs. We are committed to collaborating with and supporting these world-class research institutions, pioneers in biomedical research, academic medicine leaders and innovators as they develop life-changing therapies, conduct groundbreaking scientific research, and train clinicians to improve the lives of millions of patients as the population rapidly ages,” noted Debra A. Cafaro, Ventas Chairman and Chief Executive Officer.
Including the new developments announced today, Ventas has relationships with over 15 leading research universities in its R&I portfolio, who collectively rank in the top 95 percent of all NIH funding and conduct over 10 percent of all university research and development in the nation. Pro forma for announced developments, Ventas’s R&I portfolio will total nearly eight million square feet and is expected to generate approximately $230 million in annual net operating income upon stabilization of announced new developments.
New development commitments announced today include:
University of Pittsburgh (“Pitt”) – Immune Transplant & Therapy Center: The Pitt Immune Transplant & Therapy Center is an approximately$280 million trophy-quality historic redevelopment pre-leased to University of Pittsburgh (Moody’s Aa1) under a long-term lease. It is located adjacent to the UPMC Shadyside Hospital campus in Pittsburgh. University of Pittsburgh ranks fourth in the U.S. in funding from the National Institutes of Health (“NIH”), and is a leader in medical research and healthcare. This 350,000 square foot development will house the Immune Transplant and Therapy Center (“ITTC”), a collaboration between University of Pittsburgh and UPMC to focus on personalized medicine and the biology of cancer and aging. UPMC has committed to $200 million in research funding at ITTC.
The development is expected open in two phases, with the first and second phase expected to be completed in 2021. The full project is 70 percent pre-leased.
Philadelphia – One uCity Square and the College of Nursing and Health Professions, Drexel University: These two projects will total $400 million and will add 650,000 square feet to the thriving Philadelphia University City (“uCity”) submarket, a leading research, academic, medical, life science and innovation market where Ventas currently owns four fully leased buildings. Pre-leasing is currently at 40 percent.
The College of Nursing and Health Professions, Drexel University, totaling 260,000 square feet, is a state-of-the-art build-to-suit development that has been approved to be pre-leased to Drexel University’s College of Nursing and Health Professionals (“CNHP”). It is designed to include academic and research space. Drexel is moving CNHP to uCity to enable it to consolidate its academic and research programs, improve collaboration between CNHP and Drexel’s other colleges and schools, and provide its CNHP students, faculty and staff with immediate access to Drexel’s full suite of on campus resources. Ventas expects the College of Nursing and Health Professions, Drexel University, to open in 2022.
One uCity Square, totaling 390,000 square feet, is the next phase of the Knowledge Community at uCity Square. It follows Ventas’s success, in partnership with The Science Center, a Philadelphia-based nucleus for innovation, entrepreneurship and technology commercialization, in the recently completed 3675 Market Street. Ventas’s four buildings in the thriving uCity sub-market are nearly 100 percent leased, and the new project is designed to capture momentum and fill robust leasing demand in the exciting uCity submarket. It is expected to open in early 2022.
Washington University in St. Louis (“WashU”) – 4210 Duncan: 4210 Duncan is a $115 million, 320,000 square foot development located in the flourishing Cortex Innovation Community, which is affiliated with WashU (“Cortex”). This new development adds to Ventas’s successful Cortex R&I portfolio, which contains four owned buildings totaling over 700,000 square feet, which are nearly 100 percent occupied. 4210 Duncan will build on this momentum in the attractive Cortex market by delivering needed additional capacity to this high-demand market. Cortex is home to WashU Medical and Research Facilities and Barnes Jewish, as well as a number of high profile, high credit tenants including Boeing, DuPont, Microsoft and Accenture, which have been drawn to the Knowledge Community’s highly educated work force. CBRE recently recognized St. Louis as a top U.S. emerging life science market. Ventas expects 4210 Duncan to be completed by the end of 2021.
There can be no assurance as to whether, when or on what terms the investments in the R&I Pipeline will be completed.
Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse portfolio of approximately 1,200 assets in the United States, Canada and the United Kingdom consists of seniors housing communities, medical office buildings, university-based research and innovation centers, inpatient rehabilitation and long-term acute care facilities, and health systems. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. References to “Ventas” or the “Company” mean Ventas, Inc. and its consolidated subsidiaries unless otherwise expressly noted. More information about Ventas and Lillibridge can be found at www.ventasreit.com and www.lillibridge.com.
Wexford Science & Technology, LLC is a real estate company exclusively focused on partnering with universities, academic medical centers and research institutions to develop vibrant, amenity-rich, mixed-use Knowledge Communities built on a foundation of research, discovery, entrepreneurial activity, corporate engagement, and community inclusion. Wexford targets strategic opportunities with top-tier research universities that are directly on or contiguous to dense, urban campuses. Currently, thirteen Knowledge Communities are developed or under development across the United States including: Bio Research and Development Growth (BRDG) Park (Danforth Plant Science Center) in St. Louis, MO; The Chesterfield (Duke University) in Durham, NC; Converge Miami (University of Miami) in Miami, FL; Cortex Innovation Community (Washington University in St. Louis) in St. Louis, MO; Downtown Crossing (Yale University) in New Haven, CT; Hershey Center for Applied Research (Penn State School of Medicine) in Hershey, PA; Innovation Research Park @ ODU (Old Dominion University) in Norfolk, VA; Phoenix Biomedical Campus (PBC) Innovation Center (Arizona State University) in Phoenix, AZ; South Street Landing and the Innovation and Design District (Brown University, University of Rhode Island) in Providence, RI; uCity Square (Drexel University, University of Pennsylvania) in Philadelphia, PA; University of Maryland BioPark (University of Maryland, Baltimore) in Baltimore, MD; University Technology Park at IIT (Illinois Institute of Technology) in Chicago, IL; and Wake Forest Innovation Quarter (Wake Forest University, Wake Forest Baptist Medical Center) in Winston-Salem, NC. More information about Wexford can be found at www.wexfordscitech.com.
The Company routinely announces material information to investors and the marketplace using press releases, Securities and Exchange Commission (“SEC”) filings, public conference calls, webcasts and the Company’s website at www.ventasreit.com/investor-relations. The information that the Company posts to its website may be deemed to be material. Accordingly, the Company encourages investors and others interested in the Company to routinely monitor and review the information that the Company posts on its website, in addition to following the Company’s press releases, SEC filings and public conference calls and webcasts. Supplemental information regarding the Company can be found on the Company’s website under the “Investor Relations” section or at www.ventasreit.com/investor-relations/annual-reports—supplemental-information. A comprehensive listing of the Company’s properties is available at www.ventasreit.com/our-portfolio/properties-by-stateprovince.