BentallGreenOak, Graymark, Purchase San Carlos Commercial Asset for $190MM

BentallGreenOak, Graymark, Teachers Insurance and Annuity Association, San Carlos, Mylan Pharmaceuticals

By Meghan Hall

San Carlos has become a popular market for large investors, and two more big names are adding to their presence in the market. In a deal that closed on February 3rd, BentallGreenOak and Graymark acquired a flex asset at 120-150 Industrial Rd. for $190 million. 

The seller of the asset, according to The Mercury News, was the Teachers Insurance and Annuity Association. Graymark was also part of the previous ownership. According to a listing on LoopNet, the Class B R&D building totals 229,640 square feet. It was originally constructed in 1957 and subsequently renovated in 1997. The asset also includes bio-tech and lab space. In all, the building sits on 8.41 acres.

Graymark, in partnership with Nuveen, originally acquired the Industrial Road property in 2019 for $99 million. At the time, the building was 100 percent leased to Mylan Pharmaceuticals, which used the facility to develop dry inhalant antibiotics for cystic fibrosis patients. The building was acquired as part of Graymark’s Medium Term Lease Program, which focuses on infill life sciences, R&D and industrial assets leased to creditworthy tenants.

The property is located between the Bayshore Freeway and State Route 82. The San Carlos Airport, Redwood LIFE campus, home to Oracle, Equinix and others, are also nearby. 

A number of other companies have moved into San Carlos in recent years. Explora BioLabs announced its fourth Bay Area location in the town in July of 2021, while Premia has pitched a 190,000 square foot development at 1021 Hayward. Also last year, the Florida State Board of Administration spent $177 million to acquire 1091 Industrial Rd.–an in progress life science development. Alexandria Real Estate Equities is working on a project at 975-1075 Industrial Road, which is expected to total more than 1.5 million square feet.

West Coast Commercial Real Estate News