Breed’s Hill Capital Spends $30MM on South San Francisco Property

South San Francisco, Peninsula, Breed's Hill Capital, Apexlogistics 573 Forbes Blvd

By Vladimir Bosanac

Another South San Francisco transaction closed earlier this month revealing an East Coast investment firm acquiring a South San Francisco property located at 573 Forbes Blvd. Boston-based Breed’s Hill Capital spent $30 million, or roughly $893 per square foot, to acquire the 33,590 square foot property with redevelopment potential in one of the Peninsula’s most active cities. The seller was an entity associated with Hillsborough, Calif.-based Raymond Wong, according to public documents reviewed by The Registry.

The property as it stands today is a 1986-vintage mixed-use property that has some industrial and office uses on premises. The property is fully leased to Hong Kong-based Apexlogistics, a company with a global reach that focuses on transportation, supply chain and warehousing & distribution, among other services. Geographically, the property is in perhaps one of the most desired submarkets in the Peninsula city, surrounded by the buildings occupied by Genentech, and a number of other life science and technology firms that sit along Oyster Point Blvd., just to the north of this structure.

While it is uncertain what Breed’s Hill’s plans for this property may be, it is almost certain that the current use of this space is underutilized, and that it may provide an opportunity for this investor to redevelop the parcel with alternative uses more aligned with the companies in its immediate proximity.

Breed’s Hill focuses on tailored wealth management and investment advisory solutions to private clients, families and foundations, according to the company’s website. It is not clear from the ownership of the entity associated with this acquisition if the property was purchased on behalf of a client or a fund that the company is managing.

This sale comes on the heels of another South San Francisco purchase with similar opportunistic investment goals. In an $85 million deal that closed on May 5th, San Mateo-based SteelWave purchased the Park N Fly parking lot located at 101 Terminal Court in South San Francisco. The seller was an entity associated with the Park N Fly organization. The nearly 10-acre lot is next to US Highway 101, almost at the confluence of San Mateo Ave. and S. Airport Blvd. The property is located in an area that is surrounded by smaller industrial and specialty retail operations and is just north of the Tanforan neighborhood where a large FedEx distribution center is based.

South San Francisco has had a mix of prominent property sales and development news over the last few months. In January of this year, Lane Partners purchased a multi-tenant industrial facility in South San Francisco for $22 million. The property is located at 275 S. Maple St. and totals 70,000 square feet. That same month, San Francisco-based DivcoWest spent $164.5 million to buy the property located at 5000 Shoreline Ct., a three-story building that totals 138,381 square feet located on 8.6 acres. DivcoWest plans to convert this property to a life science building, and it obtained a $124 million loan in April of this year to commence that activity.

South San Francisco was also in the news last week because a 260-unit apartment community traded for $206 million. Sares Regis Group of Northern California sold Cadence Apartments to Bell Partners. This property, which was completed in 2019 is located at 400 Cypress Avenue is within walking distance of the retail amenities of South San Francisco’s central business district along Grand Avenue and adjacent to the biotech employment hub of South San Francisco’s Oyster Point. 

In April, two major developers in a joint venture began construction on 651 Gateway, a 300,010 rentable square foot life sciences project. Developers Boston Properties and Alexandria Real Estate Equities kicked off construction of the first phase of what will be a 1.7 million square foot AAA life science and innovation cluster in South San Francisco.

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