By Jon Peterson
Beverly Hills-based Kennedy Wilson has sold the 115,537 square-foot two-building life science property in Fremont called Fremont Bayside to a joint venture between Paceline Investors and an equity partner. The sales price was $36.25 million, or just under $314 per combined square foot, according to sources that track the sale of life science assets in the San Francisco Bay Area.
The seller of the property was represented in the transaction by the San Francisco Bay Area office of Newmark. Those working on the transaction were Steven Golubchik, president of the western region, and Edmund Najera, vice chairman. Newmark declined to comment when contacted for this story.
The completed sale means that the property has been sold for the second time in a little more than 18 months. Kennedy Wilson had acquired the property for $32.2 million in April of 2021, according to published reports. The seller at that time was Boston-based TA Realty.
Fremont Bayside has two office buildings with no vacancies as of last year. 3500 West Warren Avenue is a 61,824-square-foot asset. The property serves as the headquarters for Intuity Medical, a leading life science medical device company. The tenant conducts all product manufacturing in the lab space in the building.
47200 Bayside Parkway is the other building on the property. This asset totals 53,713 square feet. This is a two-story building fully leased to Mercury Systems. It has been a tenant in the property since 2005. The company is a multinational aerospace and defense contractor.
Kennedy Wilson had acquired the property for its commingled fund known as Kennedy Wilson Real Estate Fund VI. This is an investment fund that was formed at the end of 2019, according to information provided by the company. The total number of commitments raised for the commingled fund was $775 million. The fund at the time was its largest private placement in the company’s 31-year history and is 55 percent larger than its previous fund that closed in 2016.
Fund VI, along with its leverage, will have a total purchasing power of around $2 billion of commercial assets.
The commingled fund has a value-add investment strategy seeking properties located in the western region of the United States. All of the transactions for the fund are with existing assets and can include office, multifamily and retail properties.
This is a developing story, and additional details will be added to the story as they become available.