SOUTH SAN FRANCISCO, CA– The South San Francisco Business Center located at 800-890 Dubuque Ave., was purchased this week by Buchanan Street Partners from an affiliate of Irvine-based LBA Realty. Terms of the transaction were not disclosed.
The office/industrial facility, built in 1986, is comprised of two single-story and one two-story, concrete tilt-up buildings currently configured with a mix of (office/warehouse) flex space (77% of rentable square feet) and (office/lab) R&D space (23% of rentable square feet). It has 112,382 square feet of rentable space in total. The three-building property is situated on 5.86 acres and was 94.5% leased at the time of closing. It is currently leased to 14 tenants representing a diverse range of industries including consumer products, biotechnology, non-profit and technology.
Robert Brunswick, CEO of Buchanan Street Partners, tells GlobeSt.com:
“We were attracted to the project due to the compelling market fundamentals for flex/R&D space on the Peninsula. There is dynamic growth in the life sciences industry in South San Francisco, and Buchanan plans to reposition the project to appeal to these users, ultimately increasing their presence at the project while maintaining its diversified tenant base.”
Buchanan Street plans to make approximately $2 million in capital expenditures, including extensive exterior and interior renovations. These improvements will reposition the project as a multi-dimensional commerce center, accommodating a wide array of uses that benefit from the property's extraordinary freeway access and visibility.
The Business Center is adjacent to Interstate 101 off of the East Grand Avenue exit and a half mile from the South San Francisco Caltrain station. Nearby hotels include the Hilton Garden Inn San Francisco Airport North, Embassy Suites San Francisco Airport, Larkspur Landing South San Francisco Hotel and Hampton Inn San Francisco Airport, with the San Francisco International Airport in close proximity. Also nearby is the Genentech cafeteria.
The South San Francisco area is the largest R&D submarket in the San Francisco North Peninsula market, with more than 8.7 million square feet of space and an extremely low vacancy rate.
Buchanan Street Partners is a real estate investment management firm headquartered in Newport Beach, CA. The firm manages commingled and separate account real estate funds on behalf of institutional and private investors. Since its inception, Buchanan has invested and structured approximately $17 billion of capital in a broad range of equity and debt real estate investments throughout the country. In an article last week, Buchanan Street president, Tim Ballard, discussed the reasoning behind the firm's shifting focus.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
