Scott M. Brinker
President and Chief Investment Officer at Healthpeak Properties
Thank you, Tom, and thanks, everyone, for joining. Each segment delivered strong operating results above or in line with expectations. In life science, occupancy finished the quarter at 99%. Cash mark-to-market on renewals was positive 28%, and those leases were signed with zero TIs and no downtime. Same-store growth was very solid at 4.3%. We estimate the mark-to-market across the entire portfolio is positive 25%. There's variability by tenant so that number will bounce around from year to year. Our rent roll has exceptional credit at the top and strong diversification throughout. Our top four tenants are Amgen, J&J, Bristol-Myers and AstraZeneca, who account for 19% of our total life science rent. No other tenant accounts for more than 2%.
Leasing continues to be strong. We signed more than 500,000 feet of leases in the second quarter. To date in the third quarter, we signed another 400,000 feet and already exceeded our full year leasing budget. 90% of year-to-date leasing was done with existing tenants, a competitive advantage versus new entrants. In Boston, we've already re-leased the 107,000 square-foot early vacate that we mentioned last quarter. The new rent is a positive 38% mark-to-market with a 12-year lease. The tenant is an existing relationship, a world-class company with a $200 billion market cap.
Lots of activity in South San Francisco, the birth place of biotech, where we enjoy Number 1 market share. We signed a lease with a credit tenant for 154,000 feet at Vantage Phase 1, bringing that development project to 45% pre-leased. We continue to retenant our Oyster Point campus in advance of expirations. In June, we signed a new lease for 150,000 feet with a credit tenant to backfill the Rigel lease that expires in January 2023. And in July, we signed a 120,000 foot lease with an existing subtenant who will go direct when the Amgen lease expires in December 2023. 60% of the Oyster Point campus has now been re-leased, with the balance expiring over the next 18 months, so we're making great progress. In Raleigh-Durham, we signed a new 10-year lease with Duke for 166,000 square feet. We've now placed the two assets in the held for sale as we plan to crystallize the value creation of the new long-term lease to a credit tenant. It's not a core market for us, and the assets should command strong pricing.
Turning to development. Our active pipeline remains generally on time and on budget. The blended return on cost equaled to 7.5%. To date, we successfully managed through the volatile supply chain and cost environment. We have essentially locked in our return on cost with GMP contracts and strong pre-leasing. For the past year or two, we received many questions about the risk of new supply. As of today, that risk has significantly declined, driven by higher development costs and interest rates. Construction debt was in the high 3% range just a few quarters ago. That's long gone with rates in the 8% range today, making new starts unattractive for levered developers. Fortunately, we're not dependent on that lending market to fund our pipeline. It's clearly a tighter market today. Sponsorship and location are now paramount, both for attracting financing and tenants.
On the demand side, the need for scientific innovation is not going away regardless of the economic cycle. Biotech capital raising is still occurring at a healthy level, combined IPO and venture capital investment year-to-date is below last year's historic pace but is actually above the comparable period in 2019. A number of our tenants have reported new fundraising in the past 45 days, both public and private. And looking forward, VC firms have completed $16 billion of new fundraising this year. That capital will be used for the next round of new company formation.
In South San Francisco, we estimate market rents are up low to mid-single digits year-to-date with 2.5 million square feet of current demand. Market rents are up low single digits in Boston year-to-date and active demand is at 3.5 million feet. In San Diego, rents are up low single digits, and active demand is 1.3 million feet. These numbers are down from their all-time highs, but still very healthy by historical standards. So, when we look at the overall landscape with ongoing secular demand and the slowdown of future new supply, the outlook remains compelling.
Moving to medical office. We had a great quarter. Same-store NOI grew 4.5%, driven by leasing, recoveries, parking and Medical City Dallas. Leasing activity is ahead of budget. We signed 1.6 million square feet of leases year-to-date with another 1.1 million under letters of intent. Retention was 81%, a key metric given the cash flow on our renewals is more than 50% higher than new leases on average over the lease term. That's driven by lower TIs and commissions and no downtime.
On-campus buildings have materially higher retention rates, which benefits our relative performance. Same-store growth has consistently been at or near the top of the peer group, and we pointed three fundamental reasons: one, our on-campus locations, less than 30% of the country's inventory is on campus, by contrast, 81% of our portfolio is on campus, plus another 6% that's adjacent; two, the profitability of our host hospitals, which, on average, have profit margins 1,500 basis points above the national average; and three, operating experience and relationships that span more than two decades.
Moving to CCRCs. The business is performing very strongly on a cash basis and meeting expectations on a GAAP basis. Entry fee cash receipts are up 30% year-over-year and exceeded the amount we recognized in earnings by $10 million in the quarter. The cash receipts will amortize over a 10-year average length of stay. We continue to have pricing power, RevPAR was up 6% year-over-year, and there's no discounting. New supply in our markets remains exactly zero, and we expect that to continue. We've now had five straight months of net positive hires, and contract labor is down 40% from the high point in March.
An update on the transaction market. Price discovery is still occurring, but based on changes in borrowing costs and return targets from the big institutions, we estimate cap rates have increased about 50 basis points from a year ago. That number varies by asset though, with core assets less impacted, especially those with mark-to-market potential. We exited three non-core MOBs in the quarter for $26 million, recycling the proceeds into a core acquisition in the same amount, a relationship deal negotiated in late 2021 that fits our medical office strategy, on-campus and anchored by a leading local hospital.
Turning to the structured joint venture in South San Francisco, which we did with an existing partner. Their scale, time horizon and sophistication allows it to collaborate due to the inevitable real estate cycles. We'll receive a preferred return that helps us offset the earnings drag of redeveloping seven buildings with 400,000 square feet at our Pointe Grand campus. The venture allows us to retain majority ownership, earn fees, reduce our funding requirements and enhance our upside through a promote. The purchase price was roughly $1,050 per foot for buildings that are or will soon be vacant. The assets are 28 years old on average, so the JV will invest an additional $400 per foot to fully renovate and retenant the buildings over the next two to three years. The all-in cost implies a mid- to high 5s return on cost upon stabilization in 2025.
We've also reached agreement with the same partner to use a similar JV structure on Phases 2 and 3 of Vantage, the adjacent Class A development campus. The purchase price for the vacant land is dependent upon final entitlements and density, which should be finalized in the first half of 2023, at which point we intend to close. This joint venture structure augments our ability to create value through development and redevelopment. We see numerous opportunities to grow the partnership over the next decade, allowing Healthpeak to grow our life science footprint beyond what we can accomplish on our own.
I'll turn it to Pete to cover the balance sheet and guidance.
