An affiliate entity of PSAI Realty Partners purchased last month the three-building, 112,000 square foot office building in South San Francisco for $47,450,000, or just around $424 per square foot, according to public documents filed with the county. The seller was Buchanan Street Partners, which had owned the asset since May of 2015. At that time, Buchanan purchased the building from LBA Realty for $25.8 million.
The property is located at 800-890 Dubuque Ave., and it is commonly referred to as the Dubuque Center. It is located next to US Highway 101, in the burgeoning life science corridor of South San Francisco. Several Genentech buildings are just a couple of blocks away, and one of the tenants in the space is RevMAb Biosciences USA, a life science company focused on development of monoclonal antibodies.
Buchanan Street was attracted to the project because of the location close to Highway 101 as well as the possibility of increasing the number of flexible and life science tenants, an area experiencing significant growth in this region.
One of the people in the sale was Cushman & Wakefield’s Executive Managing Director, Mike Moran. “Our firm has a strong relationship with PSAI in the Bay Area, and we value PSAI’s strategic approach to their assets. They are well capitalized, very focused and extremely skilled in their expertise,” he said. “Having PSAI at the helm of the Dubuque asset will provide brokers and tenants with fresh new flex/tech/life science opportunities in a tightly impacted market.”
The Oyster Point neighborhood has experienced quite a transformation over the years. Most recently, Kilroy Realty purchased a development site there for $308 million in June of this year. In January of 2018, Kilroy also bought the 345-349 Oyster Point Boulevard (“Oyster Point Tech Center”), a 146,000 square foot laboratory and office project for approximately $111 million.
BioMed Realty is also in the process of developing a 1.3 million square foot state-of-the-art laboratory and office complex. This South San Francisco landmark development is planned as a three-building campus, plus amenities center, and allows for expansion of the vibrant research community in the heart of the Bay Area, one of the biggest ecosystems of premier science institutions in the world.
“We are very pleased with our investment in Dubuque Center,” said Robert Dougherty, partner, Buchanan Street Partners, in a statement. “We understood early on that the property’s strategic location within the heart of San Francisco’s burgeoning life sciences and biotech hub supported repositioning the asset to meet the high demand from biotech users in a supply-constrained market.”
Dubuque Center was 93 percent leased at the time of sale to, among others, Walmart, Emerald Cloud Lab and Thermo Fisher Scientific.
Buchanan Street was represented in the sale by Michael Leggett, David Dokko and Ben Bullock of HFF.