April 20, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announces it has completed the sale of San Mateo Bay Center, a two-building campus located at 901 and 951 Mariners Island Boulevard in San Mateo, California. Totaling nearly 250,000 square feet, the campus is currently 88 percent leased with substantial near-term rollover of 198,060 square feet in the first three years, providing immediate upside through conversion to life science use in the heart of one of the fastest growing life science clusters in the nation, according to Newmark Research.
Newmark’s Vice Chairman and Head of Northern California Capital Markets Steven Golubchik, Vice Chairman Edmund Najera, Senior Managing Director Jonathan Schaefler, Director Darren Hollak and Associate Director Jack Phipps represented the seller, Rubicon Point Partners, in the transaction to buyer Longfellow Real Estate Partners.
“San Mateo Bay offered an ideal rollover pattern offering immediate conversion opportunities, coupled with a strong rent roll providing cash flow through conversion,” said Golubchik. “As the San Francisco Peninsula continues to heat up, San Mateo is poised to benefit from tenants seeking to immediately satisfy their demand for space.”
San Mateo Bay Center has received over $17 million in capital investment since 2015 including multiple outdoor amenity spaces, a ground floor café, an on-site fitness center, creative exposed ceilings in tenant areas, HVAC renovations, lobby upgrades and parking lot resurfacing. The upgrades have created a highly improved campus environment, de-risking the life science conversion process.
Located in the heart of the San Francisco Peninsula life science cluster, San Mateo Bay Center is surrounded by major life science users including Gilead and Illumina, as well as corporate users Sony, IBM and Activision. The campus features abundant on-site parking and convenient access to Highways 101, 92, and 280, appealing to the vehicular-centric life science employee base.
The San Francisco Peninsula has experienced a substantial life science construction boom to augment the substantial lack of existing high-quality product. There is a total of 3.4 million square feet set to deliver through the end of 2021 with 83 percent of that space pre-leased to established and fast-growing life science users, according to Newmark Research. With only 590,000 square feet available through the end of 2021 relative to existing tenant demand of 3.1 million square feet, there is a strong supply demand imbalance allowing for the new owner of San Mateo Bay Center to benefit by converting the buildings to Class A Life Science Product.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.
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