UCSF Expands Mission Bay Holdings with $767M Acquisition

The University of California, San Francisco (UCSF) has paid $767 million to acquire a pair of buildings at the edge of its current campus in Mission Bay, reported the San Francisco Business Times. The sellers of 409 and 499 Illinois St. were Alexandria Real Estate Equities and CBRE Investment Management. A 587-space parking garage was included in the sale.

UCSF already leases most of the 247,003-square-foot 499 Illinois, where its Center for Reproductive Health is located. It plans to make the 278,418-square-foot 409 Illinois a new home for its School of Dentistry, Brian Newman, the university’s chief real estate officer, told the Business Times. That building became vacant in 2024 after long-term tenant FibroGen decided to exit its lease four years early.

The deal will expand UCSF’s footprint in Mission Bay; the eastern edge of its existing owned campus there borders the Illinois complex. Additional capacity is a valuable commodity in the Mission Bay submarket, which has emerged as one of San Francisco’s best-performing submarkets, due largely to the presence of OpenAI.

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