Breakthrough Properties Pays $78M for Everett Biomanufacturing Facility in Dermody Deal
Breakthrough Properties has acquired a purpose-built biomanufacturing facility in Everett, Washington from Dermody for $78 million, marking the life sciences real estate firm's first investment in the Puget Sound region.
The transaction was recorded by Snohomish County on August 11, 2026, with a sale date of July 29, 2026. The property is a 270,000-square-foot facility at 215 Shuksan Way, located approximately 30 miles north of downtown Seattle. The buyer entity, 215 Shuksan Owner, LLC, is a Los Angeles-based acquisition vehicle for Breakthrough Properties. The seller was DPIF2 WA 7 Mountain View 2, LLC, a Reno, Nevada affiliate of Dermody Properties, the Nevada-based logistics real estate firm that originally developed the asset.
At $78 million for 270,000 square feet, the deal implies a price of approximately $289 per square foot.
A Vacant Facility Paired With a Long-Term Lease
The facility was purpose-built for Seagen, a biotech company that vacated the building after Pfizer acquired it in December 2023 and halted construction at the site in March 2024. The property is a newly delivered, vacant pharmaceutical manufacturing building with specialized infrastructure suited for large-scale biologics production.
Simultaneous with the acquisition, Breakthrough secured a 21-year lease for the entire campus with a global biopharma company, which the firm declined to identify. The structure — a full-building, long-term single-tenant lease — converts a capital-intensive, non-performing development asset into a long-duration income stream.
Breakthrough's Second Fund and a Strategic Pivot
The acquisition was executed through Breakthrough Properties Growth Portfolio II, the firm's second value-add fund. Breakthrough launched the vehicle in late 2025 and held a first close in November on $330 million in direct commitments plus an additional $100 million in co-investments. The fund is targeting $1.5 billion in total commitments.
Breakthrough describes the Everett deal as a significant deployment for Growth Portfolio II. The fund's strategy represents a shift from its predecessor: while Breakthrough Properties Growth Portfolio I — which closed on $3 billion in 2022, well above its $1.5 billion target — was used for several speculative development projects, including a 10-acre campus in San Diego leased to Pfizer and an AstraZeneca cell-therapy lab in Amsterdam, the second fund is focused primarily on acquiring existing assets experiencing dislocation.
Dan Belldegrun, CEO of Breakthrough Properties, speaking at the time of the fund's first close, noted that the firm is seeking an overall value-add return profile, with investments ranging from purpose-built development and value-add conversions, as well as some core or core-plus investments in existing assets. Belldegrun declined at that time to provide details on target markets or regional deployment breakdowns for the fund.
Like its predecessor, Growth Portfolio II will be focused on major biopharma markets in the U.S., the UK, and Continental Europe — a geographic scope Breakthrough says distinguishes it among life sciences real estate managers.
About Breakthrough Properties and Its Backers
Breakthrough Properties is a joint venture between New York-based Tishman Speyer and Los Angeles-based family office Bellco Capital, formed in 2019. Tishman Speyer, ranked 27th on the PERE 100 list of the world's largest private real estate managers, has $65.9 billion in assets under management. Breakthrough itself has $2.69 billion in assets under management, according to PEI Group data.
The firm owns 12 life sciences properties across the United States and three in Europe, according to its website. The Everett acquisition adds a first foothold in Washington state's Puget Sound market to that portfolio.
Market Context
The transaction illustrates a pattern emerging in institutional life sciences real estate: purpose-built cGMP facilities left vacant or incomplete following biopharma consolidation — in this case, Pfizer's absorption of Seagen — are being repositioned through long-term lease structures with new tenants. Breakthrough's Growth Portfolio II is explicitly designed to target such dislocated assets, acquiring newly built or partially leased properties and stabilizing them through tenant relationships rather than ground-up development.
The 21-year lease length attached to the Everett deal is notable for a value-add vehicle, providing the fund with an extended income horizon tied to a single specialized user in a market where biomanufacturing infrastructure is difficult and costly to replicate.
Sources
Breakthrough Properties — Breakthrough pays $78M for Seattle-area biomanufacturing facility