USD Discovery District Inks Preferred Developer Agreement with Tetrad Property Group
“This agreement finalizes the strategic partnership that will drive the development of the USD Discovery District forward,” said Rich Naser, Jr., president of the USD Discovery District. “We selected Tetrad Property Group for their industry expertise and capacity to invest equity into projects—among other factors. Our partnership will accelerate the timeline of projects and position the park to attract new tenants—and the right type of tenants.”
The 10-year agreement features TPG spearheading the development, design, financing, construction, leasing and operations of the buildings, while the USD DD does the same for infrastructure, including streets, sidewalks, utilities and signage in addition to grounds and common areas. The two organizations will team up to market and manage the district up to the 10-year mark or the completion of the initial 400,000 square feet.
“We understand that public-private partnerships mean something different to nearly everyone. Projects like the University of South Dakota Discovery District require innovation, collaboration and adaptability from all sides of the table to ensure the right outcome,” said Chad Beeson, Director of Operations for TPG. “The continued growth of the Sioux Falls region, combined with the economic development potential of the Discovery District, is a scenario that we are excited to be a part of and invest in.”
Headquartered in Omaha, Nebraska, TPG is a full-service real estate development company that has unique expertise in operating a complex public-private partnership environment with a shared vision of fostering innovation and economic growth. TPG has established itself as a developer of research parks, specialized facilities and corporate building projects, including its role as the Master Developer for Nebraska Innovation Campus in partnership with the University of Nebraska-Lincoln. TPG has also worked on other notable complex science and medical projects including Colorado State University’s Translational Medicine Institute and the University of Nebraska Medical Center/Nebraska Medicine’s Fred and Pamela Buffett Cancer Center.
The Discovery District selected TPG as its preferred research facility developer in June of 2017 following a competitive process, and signed a letter of intent to have TPG develop one or more multi-tenant research and advanced manufacturing facilities.
The initial building, originally planned as a 25,000 square foot facility, will now be an 84,000 square foot facility leased by SAB Biotherapeutics and Alumend with offices for the Discovery District and additional leasable space. With the addition of a 42,000 biopharmaceutical manufacturing facility, the initial development will reach 126,000 square feet.
Under the agreement, TPG will have the first opportunity to develop certain types of buildings in the district, including science and technology businesses, research and light industrial laboratories and classroom space.
“The agreement with TPG will enable us to quickly provide the types of specialized development in research, science and technology space that are core to the district,” added Naser. “There are also many opportunities for commercial, residential, hotel, retail and mixed-use development available for others that specialize in those areas.”
With the agreement executed, TPG will meet with the Discovery District, SAB Biotherapeutics and Alumend to initiate final design, planning, construction and timelines for a 2020 move-in.
“We’re looking forward to an on-going, long-term and mutually beneficial relationship with TPG that gains momentum over time,” added Naser. “Together, we’re building an economic development asset to inspire collaboration and innovation for generations to come.”
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