Graymark Capital Completes $15.7MM Acquisition of Palo Alto Life Sciences Buildings

Graymark Capital, Fabian Way, Palo Alto, Johnson & Johnson, VerbSurgical, Stanford University
Courtesy of Graymark Capital

(EDITOR’S NOTE: According to industry sources, Graymark paid $15.7 million for the assets.)

San Francisco, CA – Continuing expansion of its active Life Science Program, Graymark Capital, Inc., in partnership with Monument Square Investment Group (“MSIG”), has acquired a 24,000 square foot Life Science campus at 3960 and 3980 Fabian Way in Palo Alto, California.

Fabian Way is a two-building Life Science project located in the Peninsula submarket of the San Francisco Bay Area. The property, formerly leased to Johnson & Johnson subsidiary VerbSurgical, is currently vacant. Graymarkwillmodernizetheexteriortocreateacampus- like environment for the twin R&D buildings originally constructed in 1960. The project has direct access to Highway 101 between the 84 and 85 Freeways and is located 4 miles from Stanford University.

The Peninsula submarket is one of the major Life Science hubs in the United States with 18 million square feet of space in the market. Proximity to Stanford University drives demand for space due the research talent coming out of the life science programs.

The project was purchased under Graymark’s Life Science Program, which focuses on well- located infill projects in major life science clusters. This property was an appealing investment for Graymark and MSIG due to the location in Palo Alto, quality of the assets and strong market fundamentals. Fabian Way is Graymark Capital’s 15th project in the Bay Area.

“We are excited to bring a high-quality project to market in close proximity to the country’s leading life sciences institutions” said CEO Brian Hecktman. “The project represents a unique standalone life science campus in a market with limited supply and strong demand for research space.”

The buyer was represented by Kalil and Stephen Jenab of Cushman Wakefield. Leasing team will include Ben Paul of Cushman Wakefield.

The seller was represented by Brad Martin of Stetson Earhart.

About Graymark Capital

Graymark Capital, Inc. is a real estate investment firm headquartered in San Francisco, California that invests in commercial properties throughout the West Coast. The company has acquired 2,700,000 square feet of institutional quality property valued at over $1.1 billion since 2012. Founded by CEO Brian Hecktman, with COO/CFO Jeff Hoppen and SVP of Acquisitions Rick Lafranchi, the company focuses on opportunities where it can create significant value by active asset management and repositioning. Graymark invests in assets with a modern design that appeal to today’s tenants that are located in infill markets In the Western United States with a highly-educated workforce, strong employment growth and attractive quality of life.

About Monument Square Investment Group

Monument Square Investment Group is a Beverly Hills, CA-based privately held alternative investment management firm exclusively focused on opportunistic U.S. real estate equity. MSIG’s focused and thematic investment approach is premised on identifying dislocations, acquiring assets that MSIG believes are undervalued by the capital markets and developing/repositioning assets that provide arbitrage-like risk-return profiles. MSIG leverages its unique investment theses and diverse network of strategic relationships to create joint ventures with best-in-class sponsors, aiming to consistently generate alpha throughout market cycles. MSIG is led by Managing Partner Ben Poirier, along with CFO Paul Valente, COO Matt Doherty and Partner Tyler Steindorf.

West Coast Commercial Real Estate News