By Jon Peterson
San Francisco-based Stockbridge has acquired the six-building Waterfront at Harbor Bay office and life science property in Alameda for $127.5 million, according to information provided by the investment firm. It also is in process to acquire an additional 5.12 acres located at 1951 Harbor Bay Parkway. This is a build-to-suit transaction that involves a variable purchase price and is not expected to close until the first quarter of 2022.
Stockbridge has entered into a forward agreement to acquire the 220,000 square foot build-to-suit building upon completion and it being occupied by Exelixis, a genomics-based drug discovery company. Designed by Oakland based, brick., the new building will serve as the Company’s new headquarters. Exelixis is planning to lease the property for 20 years. The tenant has already occupied four of the existing buildings in the Waterfront at Harbor Bay and is in the process of improving a fifth building.
The transaction on the sale of the existing buildings was completed directly between Stockbridge as the buyer and a joint venture between Dallas-based Hillwood Investments and Oakland-based srmErnst Partners as the developer/seller. Hillwood declined to comment when contact for this story. The existing buildings are now 100 percent occupied.
Stockbridge is a strong believer in the Alameda market. “We specifically like Alameda for many of the same reasons Exelixis elected to relocate its headquarters there from South San Francisco in 2017. It’s very centrally located within the Bay Area yet affords tenants a low-density setting with the ability to scale and carve out a firm presence without being in the direct, and very expensive, shadows of the Bay Area’s pharmaceutical giants,” says Alec Maghami, a vice president for investments with Stockbridge.
Harbor Bay is mostly known as an office and life science asset. It does have one building, the 100,000 square foot 1750 North Loop Building, that is a mission-critical sorting and distribution facility. It benefits from its access to the FedEx regional air shipping hub located across from Harbor Bay Parkway.
Stockbridge is looking to add more life science assets going forward for all of its commingled funds. “Investing in life science assets is a strategic focus for nearly all of Stockbridge’s managed funds, with a geographical focus primarily on the big three life science hubs: the San Francisco Bay Area, Boston and San Diego. These markets benefit to an extraordinary degree from the combination of major research institutions, venture capital and government funding, well-educated populations and agglomeration, or the clustering effect, of life science firms wanting to locate near one another,” said Maghami.