SOUTH SAN FRANCISCO—With land constraints in most submarkets, a large, fully entitled site is, of course, rare. One such site is The Landing at Oyster Point, a 42-acre waterfront development site allowing for up to 2.25 million square feet of commercial space amidst a life sciences and technology hub. This development represents the only fully entitled site in the Bay Area able to accommodate more than 1 million square feet of class-A office and/or life science product with unobstructed panoramic views of the Bay and immediate waterfront access.
An advisory team has been put in place for the capitalization of the redevelopment. JLL's capital markets experts have been hired as the exclusive adviser to Shorenstein Properties and SKS Partners. Managing directors Michel Seifer, Rob Hielscher, Erik Doyle, Will Connors and vice president Erik Hanson are leading the JLL team's international efforts.
Seifer tells GlobeSt.com: “It's no wonder that even though we've just initiated the marketing process, we have already received significant global developer interest as well as corporate user inquiries.”
The development site is just five miles south of San Francisco, directly adjacent to Genentech's global headquarters and surrounded by more than 60 other pioneering firms. South San Francisco has been at the forefront of supporting entrepreneurship and is one of the top clusters in the country for life science and technology. In many studies, the city is first in venture capital, National Institutes of Health funding and angel funding, and the first in the number of patents granted.
Since Shorenstein and SKS acquired the property in 2008, the city has partnered with the developers to prepare the site for redevelopment. The plans for additional amenities at the site include a new 350-room hotel, conference center, and 40,000 square feet of retail and restaurant space, as well as a new public beach, bike path, recreation field and boat ramp. The development site currently provides substantial in-place income from an existing 443,000-square-foot business park, 235-berth marina village and a 30-room boutique hotel.
Russell Cooper, managing director, Shorenstein Properties, tells GlobeSt.com: “This is the largest fully entitled site of its kind in the Bay Area—capable of delivering over 2 million square feet of commercial space—and so we think the time is right to explore options to bring in new capital.”
Transportation infrastructure in and around The Landing at Oyster Point is a strong point, with access from all options – Highways 101 and 280, the Bay Ferry, light rail (Caltrain, BART and future high-speed rail), and is just a few minutes from San Francisco International Airport. The site has convenient access to the key regions in the Bay Area, along with Stanford, UCSF and UC Berkeley.
“It's incredibly rare that an offering of this scale becomes available in the San Francisco Bay Area market, especially one that is strategically located in the Peninsula office market between Palo Alto and San Francisco,” said Seifer. “The timing for this investment is good. Last year, the Bay Area captured $24.7 billion–half of all US venture capital funding–and technology and healthcare/biotech companies are looking to expand their presence in the heart of the most prominent life science cluster in the world.”
As previously reported, Shorenstein purchased an office campus in North San Jose earlier this year.
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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.
