Alameda Biotech Building Trades Hands for $158.9MM

Stockbridge Capital Group, Alameda, srmERNST, Hillwood Investment Properties, Exelixis, brick.
Courtesy of srmERNST

By Meghan Hall

The life science industry continues to be a major driver of commercial real estate in the San Francisco Bay Area, and assets are often quickly snapped up by eager investors. In a deal that kicked off the month of March with a bang, Stockbridge Capital Group purchased an Alameda asset for $158.9 million, or about $722 per square foot. The deal was all cash, stated The Mercury News, who first reported on the transaction.

Located at 1951 Harbor Bay Drive, the asset is brand new and was developed by its sellers, a joint venture of srmERNST Development Partners and Hillwood Investment Properties. Also known as the Exelixis Facility for its expanding tenant, the project totals 220,000 square feet. The project will be used as the company’s new headquarters. Exelixis signed its lease back in February of 2020; the company also already occupies several other buildings along Harbor Bay Parkway, as well. It will occupy 1951 Harbor Bay Drive for 20 years.

The project is designed by architecture firm brick. And strives to “give scientists plenty of distraction-free think time,” according to a landing page for the website. brick. Employed a metrics-based design approach that emphasized views, natural light and ample parking. About 65 percent of the floorplan is designated to private offices, while open offices are located along the exterior walls and windows. The building also features all-hands gathering spaces and zoned break stations. The building is also all-electric, thanks in part to a high-tech glazing and shading system.

The building is located just adjacent to Oakland International Airport. Other firms, such as Abbott, LeukoLab and a Frito Lay Distribution Center, are also nearby.

Stockbridge Capital Group is a private equity real estate investment company. Originally founded in 2003, the firm is headquartered in San Francisco. The acquisition of the 1951 Harbor Bay has been in the works for some time; The Registry first reported on the deal in September of 2020. At the time, the purchase price–which was variable based on market conditions–totaled $127.5 million, or just under $580 per square foot.

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