JLL Arranges $237.7M Starwood Property Trust Loan for King Street Properties' Pathway Triangle Campus in Morrisville

JLL Capital Markets announced Oct. 12 that it arranged $237.7 million in financing for Phase I of Pathway Triangle, an advanced manufacturing and cGMP campus on McCrimmon Parkway in Morrisville, North Carolina. JLL represented the borrower, King Street Properties, in securing the loan from Starwood Property Trust.

Phase I comprises four buildings totaling 581,789 square feet. The campus is anchored by Novartis, and Liquidia Pharmaceuticals occupies space in one of the completed buildings. A planned Phase II would bring the campus to more than 950,000 square feet of Class A advanced manufacturing space.

Pathway Triangle Phase I Financing Team

The JLL Capital Markets team was led by Senior Managing Director Brett Paulsrud, Managing Directors Amy Lousararian and Andrew Gray, Director Ward Smith, Vice President Hugh Doherty and Analyst Libby Horton.

"Pathway Triangle represents a best-in-class advanced manufacturing campus anchored by investment-grade tenancy in one of the nation's premier life science markets," said Paulsrud. "The financing attracted exceptional interest given King Street's institutional profile, the property's validated tenant demand from global pharmaceutical leaders, and the Research Triangle's accelerating momentum as a leading biomanufacturing hub in the United States."

Campus Details and Leasing

Two Phase I buildings, totaling 377,111 square feet, have been completed and are 73% leased. Building 1, at 175,222 square feet, is partially leased to Liquidia Pharmaceuticals, which manufactures YUTREPIA, an FDA-approved inhalation powder for pulmonary arterial hypertension. Building 2, at 201,889 square feet, is 100% leased to Novartis.

Construction on the two remaining Phase I buildings began in the third quarter of 2026. Building 4 will total 148,434 square feet and is available for lease. Building 7 will total 56,244 square feet and is fully pre-leased to Novartis. The completed buildings represent about 64.8% of Phase I area, and the buildings under construction represent about 35.2%.

The buildings are designed for cGMP and advanced manufacturing uses. King Street Properties markets the campus under its Pathway platform, which offers customizable life science and advanced manufacturing space with ready-to-work infrastructure. The platform also includes Pathway Devens, a 700,000-square-foot master-planned campus in Devens, Massachusetts, and Pathway RTP, a 95-acre pad-ready site in Research Triangle Park, North Carolina.

Research Triangle Biomanufacturing Market

Pathway Triangle sits less than two miles from Raleigh-Durham International Airport, with access to Interstate 40, Interstate 540 and North Carolina Highway 54. The Research Triangle region is home to Duke University, the University of North Carolina at Chapel Hill and North Carolina State University, which collectively produce more than 40,000 graduates annually.

The region has drawn multibillion-dollar investment announcements from Novartis, Novo Nordisk, Biogen, Genentech and others. The Research Triangle biomanufacturing market is 94% occupied, with no space under construction outside the King Street portfolio. North Carolina's corporate tax rate is 2.0%, scheduled to fall to 0% by 2030, and state grant programs have disbursed more than $575 million since 2007, generating $20.7 billion in private investment.

Broader life sciences conditions have been mixed. National life sciences vacancy declined in the fourth quarter of 2025 for the first time in more than a year, with Research Triangle among the markets posting occupancy gains. New laboratory construction has largely paused in major markets, with most remaining projects being build-to-suit developments. Research Triangle laboratory vacancy stood at 11.3% in the first quarter of 2026, with more than 1.1 million square feet of net absorption in 2025. North Carolina's recent life sciences expansion has been led by Novo Nordisk, Johnson & Johnson and Fujifilm, with more than $10 billion in announced investment during 2026.

Market Implications

The financing reflects lender activity in specialized, tenant-backed manufacturing space. Novartis's full lease of Building 2 and pre-lease of Building 7 mean one of the two buildings under construction has secured a tenant before delivery. If Phase II proceeds as planned, it would add roughly 368,000 square feet to the campus.

King Street Properties, headquartered in Boston, has 7 million square feet of assets under ownership and management across Greater Boston, New York, the Research Triangle, San Diego and the San Francisco Bay Area. JLL Capital Markets has more than 3,000 specialists worldwide, with offices in nearly 50 countries.

Sources

JLL news release, "JLL led the financing efforts for Phase I of Pathway Triangle," Oct. 12, 2026: https://www.jll.com/en-us/newsroom/jll-led-the-financing-efforts-for-phase-i-of-pathway-triangle