Kilroy Realty Corp. is asking city leaders of South San Francisco to approve its acquisition of the planned $2 billion, 2.25 million-square-foot Landing at Oyster Point biotech development in the city, the San Francisco Business Times reported, citing city officials.
Although the sale price was not revealed, the publication said the deal with developer Oyster Point Development LLC could close by the end of May.
The initial phase of the project at Oyster Point Boulevard will consist of two buildings encompassing 508,000 square feet of laboratory space and offices to be developed at an estimated cost of roughly $300 million that includes $30 million for infrastructure enhancements by the city, the report added. Construction on the first phase could begin within 2018.
Oyster Point Development bought the 42-acre site from Shorenstein Properties LLC and SKS Partners in August 2016 for $171 million, according to the report.
In September 2017, the office real estate investment trust was reported to have agreed to buy the first two phases of the project and had negotiated a right of first offer to buy the development's third and fourth phases.
South San Francisco's successor redevelopment agency and the City Council are expected to review the project in the last week of May.
Tracy Murphy, Kilroy's executive vice president of life sciences, did not provide any comments on the deal, the publication said.