Longfellow Continues West Coast Expansion Joining PGIM with Major Stake in SF Tech PkMarch 26, 2019
(SAN FRANCISCO–Longfellow Real Estate Partners continues to grow its tech and life sciences portfolio by entering into a joint venture partnership with PGIM Real Estate to own and operate Bayshore Technology Park, located in the San Francisco area’s acclaimed Mid-Peninsula innovation cluster.
Longfellow acquired a 49.9 percent ownership stake from PGIM Real Estate and will serve as Bayshore’s operating partner. PGIM Real Estate will retain a 50.1 percent ownership stake in the portfolio. PGIM Real Estate, acting on behalf of institutional investors, is the real estate investment business of PGIM, the global investment management business of Prudential Financial, Inc. (NYSE: PRU).
Bayshore includes 20 buildings totaling 997,282 square feet (SF) and is a key part of the tech and life science cluster thriving in and around San Francisco. The campus, located in Redwood City, is home to the world headquarters of Shutterfly, as well as innovative lab and technology companies Nevro, Procept Biorobotics and Proteus Digital Health.
The Bayshore acquisition follows Longfellow’s late 2018 purchases of the Inspire and Roselle campuses in the Sorrento Valley. With Inspire’s 318,969 SF and Roselle’s 37,555 SF, Longfellow’s West Coast portfolio now totals 1,353,806 SF.
“By acquiring a major stake in Bayshore Technology Park, Longfellow significantly expands its West Coast presence and undertakes a transformative lab conversion in one of the world’s preeminent life science and technology clusters, said Longfellow’s Managing Partner, Adam Sichol. “We look forward to partnering with PGIM Real Estate, a global real estate powerhouse, to create long term value together and to continue to build strong relationships with top tier innovation companies.”
Overall, the acquisition increases Longfellow’s holdings to more than 3,848,566 SF of tech and life sciences space owned and under management in California, Greater Boston, Philadelphia and North Carolina’s Research Triangle region.
At the time of the transaction, Bayshore was approximately 86 percent leased. Working with PGIM Real Estate, Longfellow will continue to build out Class A facilities as space becomes available, including laboratory space on a speculative basis. Longfellow’s lab conversion strategy is designed to attract and retain top life science talent, making Bayshore the Peninsula’s best-in-class life science park.Adam Sichol