Longfellow Buying Stake in SF-Area Offices
Longfellow Real Estate has agreed to buy a 49% stake in an office/laboratory complex on the San Francisco Peninsula, in a deal that values the property at $655 million.
The seller, PGIM Real Estate, is retaining the majority interest in the 997,000-square-foot Bayshore Technology Park, in Redwood City, Calif. The 20-building complex is about 90% leased, primarily by technology and life-science tenants. Eastdil Secured is advising PGIM.
Boston-based Longfellow, which specializes in buying and developing life-science properties, is ramping up its activity on the West Coast. It made its first purchase in the region last month, paying $112 million for a 319,000-sf office campus in San Diego. HFF advised the local seller, Parallel Capital.
The pending deal shows that Longfellow is wasting no time making good on its Western expansion plan. It will pay about $321 million for its interest in Bayshore Technology Park. The pricing values the property at $657/sf.
PGIM acquired the complex in 2005 from local developer Peery Arrillaga for $236.5 million, or $237/sf. Then known as Westport Office Park, the property was just 40% leased at the time, according to the Silicon Valley Business Journal. PGIM renamed it, made a number of upgrades and repositioned it as one of the Bay Area’s largest multi-tenant office campuses for technology and life-science tenants.
Bayshore Technology Park is near the intersection of Routes 101 and 92, roughly 25 miles from both San Francisco and San Jose. The buildings are at 900-1300 Island Drive and 800-3800 Bridge Parkway, alongside an inlet off San Francisco Bay.
The property’s amenities include a cafe, a fitness center, an outdoor recreation area with a basketball court, a training center with a kitchen, and walking trails. There are many restaurants and hotels in the surrounding neighborhood, and a shuttle connects to a nearby Caltrain station.
Longfellow owns properties that total more than 3 million sf, a figure that would be boosted significantly by the pending acquisition. In addition to San Diego, the firm has holdings in the Boston, Philadelphia and Raleigh markets.