Facebook’s parent company Meta is expanding across the region again. On the heels of the announcement by Tishman Speyer that the social media behemoth leased 720,000 square feet at the firm’s Crossman Drive campus in Sunnyvale, Lane Partners and Barings have leased an additional 520,000 square feet to Meta at their Peninsula Innovation Point in Burlingame, according to sources with knowledge of the deal. That brings this week’s total to 1.24 million square feet leased by one of the largest companies in the Bay Area.
Peninsula Innovation Point was purchased by Lane Partners and Barings in July of this year for $170 million, according to previous reporting by The Registry. Presently the campus consists of a 275,746 square foot office campus with a waterfront location on the San Francisco Peninsula at 555-577 Airport Blvd. in Burlingame, California. This campus will be converted and developed into a 536,001 square foot project consisting of three components – an existing 126,419 square foot office building that will be converted to specialized technology space, a pad to develop 260,255 square feet of tech-oriented office space and a 149,327 square foot office building that will undergo improvements to drive further appreciation.
“Barings’ dedicated investment thesis develops and improves state-of-the-art real estate in innovative markets with a highly skilled workforce that caters to the most visionary companies in the world. In partnership with Meta and Lane Partners, we’re excited to be a part of this dynamic project,” said Joe Gorin, head of U.S. real estate acquisitions and portfolio management, Barings, in a statement.
Barings anticipates this strategic repositioning and improvements to the existing assets will result in Green Building Council certifications, and the development component will be a state-of-the-art asset with desired ESG-specific features and qualify for LEED certification, marking the project as a desirable next-generation campus in high demand by innovative companies, the company stated at the time of the acquisition.
“We’ve aggregated a significant amount of data that proves out not just where office demand is growing today, but also where the skilled workforce and resultant employer expansions are likely to occur in the future. This micro submarket has already attracted some of the most innovative companies, and we believe it is poised to continue to grow in terms of long term office and life science demand,” commented David Otte, managing director and acquisition officer for Barings in a statement at the time of the property’s acquisition.