(EDITOR’S NOTE: According to public documents, the purchase price was $36.1 million, or just over $285 per square foot. The sale closed on February 17, 2017. DES Architects has been retained to refresh the look of the building, which is undergoing renovations.
“Beyond the underlying strength of the property and favorable market fundamentals, we like the flexibility offered through the ownership structure and are confident in our operating partner’s ability to manage the asset-level performance,” said Steve Inglis, the portfolio manager at LaSalle Investment Management. “Off-market opportunities such as this are a great way for LaSalle to selectively increase our clients’ exposure to highly desirable R&D facilities which will continue to experience strong demand in this region, at a significant discount to neighboring submarkets with similar product.”)
Full Service Bay Area Real Estate Developer and Global Real Estate Investment Management Company Acquire Vacant Building Off-Market Transaction with Undisclosed Full-Building User in Tow
EMERYVILLE, Calif.–Harvest Properties, a full service commercial real estate investment, development and management firm and longtime partner LaSalle Investment Management ( “LaSalle”), the global real estate investment manager, announced today they have acquired 1149 Chess Drive in Foster City from a private individual for an undisclosed sum. During its due diligence, Harvest executed a long-term lease with an undisclosed robotics company for the entirety of the formerly-vacant, 126,345 square foot office/R&D/lab building. The tenant’s lease commenced immediately upon close of escrow.
The Property will be the new global headquarters for the undisclosed company, an ideal location just North of Highway 92 in the Vintage Park submarket of Foster City in between Gilead and Illumina’s corporate headquarters. Situated on 5.69 acres, 1149 Chess Drive features 67,000 square feet of office space, 18,000 square feet of lab space, and 41,000 square feet of R&D/warehouse/amenity space. The Property has four auto-leveling docks, a warehouse clear height of 26 feet, two generators, and power totaling 4,200 AMPs.
“We are thrilled to have been able to leverage our deep relationships within the brokerage community to cultivate a situation in which we are creating instant value,” said Joss Hanna, Partner at Harvest Properties. “We recognized the potential this building had to offer and were able to bring all parties to the table to structure a deal that was beneficial for all within in a very short time frame. We are thrilled to begin a long-term relationship with the Property’s new tenant and to have the opportunity to work in partnership with LaSalle on another venture.”
1149 Chess Drive is the partnership’s third recent venture in the San Francisco Bay Area. Harvest and LaSalle purchased 60 South Market Street, a Class A building in downtown San Jose in December, 2013 and sold the asset in August, 2016 following a significant full-building repositioning, which included increasing the property’s occupancy from 68% to 92% during the hold period. Most recently, the partnership acquired the two-building portfolio Century Center in San Mateo in a partial sale-leaseback transaction from Fisher Investments in April 2014. The partnership completed a complete interior and exterior repositioning of the project that included the ground-up development of a new 3-story structured parking garage and sold the 100% leased asset in September 2016.
Mike Moran of Cushman and Wakefield represented Harvest and LaSalle on the transaction.
About Harvest Properties
Founded in 2002, Harvest Properties is a full service commercial real estate investment firm specializing in acquiring, developing, managing and financing commercial property, primarily through joint venture investments in Northern California. Harvest Properties strives to generate attractive returns for its financial partners and provide creative real estate solutions and outstanding service. Harvest Properties’ portfolio comprises approximately ten million square feet of office, industrial, R&D and retail properties in the San Francisco Bay Area. For more information, please visit www.harvestproperties.net.
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers with approximately $60 billion of private and public equity and private debt investments under management. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.