By Jon Peterson
Florida State Board of Administration has paid $177 million for the Brittan West life science property in San Carlos, according to information provided by the pension fund in a board meeting document and in what the investor stated in an email.
The seller of the property was a venture between Premia Capital in Redwood City and Prince Street Partners in Menlo Park. The listing agent on the sale was Will Connors, senior managing director with JLL. He did not respond to phone calls seeking comment for this story.
The life science property is located at 1091 Industrial Road and the groundbreaking on the project designed by brick. happened earlier this year in March. The expectation is that the property will take two years to fully develop the asset.
Florida SBA provided $80 million of equity into the transaction, as it stated in a board meeting document. The sellers of the property will share in the ownership of the newly developed structure and retain some equity in the transaction. Pacific Western Bank is the construction lender on the project.
The pension fund acquired the property as a separate account investment through its existing manager relationship with Dallas-based L&B Realty Advisors.
“We view the San Carlos market as one that is already an established life science market with the assets that are already there. This includes the activity that Alexandria Real Estate Equities has in the area,” says Paul Noland, a vice president of acquisition for L&B. He worked on the transaction in San Carlos.
The life science market in the Bay Area as well as the rest of the United States is one that is characterized by a significant inbalance between supply and demand. “It’s our opinion that there is three to five times as much demand for space for tenants as there is room in buildings,” said Noland.
The transaction will not be the last life science deal that L&B will acquire for its clients. “We are now looking for more acquisitions in all of the major life science markets in the country. This would include Northern California, Seattle, San Diego and Boston/Cambridge,” said Noland.