Tarlton Properties Partners with Principal Real Estate Investors on Reinvestment in Menlo Business Park

Investment Supports Commercial Office Park’s Continuing Expansion in Life Sciences, Medical Device and Green Tech Companies

MENLO PARK, Calif. (Jan. 20, 2014) – Tarlton Properties, Inc. (TPI), a commercial property development and asset manager, announced today that Principal Real Estate Investors, in a return to the property, will become a 90% investor in Menlo Business Park in Menlo Park, Calif.

In 1985, TPI (formerly Lewis & Tarlton) developed Menlo Business Park (MBP), a 900,000-square foot commercial office park featuring 16 buildings on 50 acres near the innovation center of Stanford University, in the heart of Silicon Valley. Original investors were Lewis, Tarlton, Oltmans and Principal Real Estate Investors. Principal Real Estate Investors sold out to a private investor in 1999, leaving TPI as an owner, developer and manager of record. Today, Principal Real Estate Investors re-commits to the site as TPI continues to redevelop existing office space and add new R&D facilities to establish MBP as the premier location for life sciences, medical device and green tech companies in Silicon Valley.

This new capital infusion from Principal Real Estate Investors allows TPI to enhance the technology to the property, and provide more complex life science build outs while retaining the capability to build out spaces quickly and efficiently.

The Park has benefited from the recent shift of the bio-tech epicenter south towards Stanford University, where life science patent generation is second only to the Harvard/MIT area. As Stanford continues to invest in its medical center, new life science patent generation in Silicon Valley is likely to surpass that of the Boston Area. MBP is poised to capture demand for the unique space required to transform these academic pursuits into thriving start-up companies.

“Principal Real Estate Investors shares our vision of bringing the property in line with the needs of life science tenants for the next 30 years and beyond,” said John Tarlton, CEO and president, Tarlton Properties. “We are confident that our improvements will elevate the property and continue to make it attractive to growing life-science companies in the area.”

TPI and Principal Real Estate Investors have previously partnered on numerous projects ranging from the original development of MBP, to value add asset turnarounds, to a currently active joint venture to acquire older industrial buildings just outside MBP and reposition them to be life science buildings. Principal Real Estate Investor’s reinvestment in MBP is intended to build on the success of this current joint venture in life science buildings.

Capitalizing on the region’s need for incubator space, TPI recently developed Menlo Labs, two buildings in the Park dedicated to enhancing and enlarging the pool of space available for early stage life science companies to root and grow. Menlo Labs is unique in that companies can lease a single small lab (as small as 250 square feet) on a month-to-month basis. Principal Real Estate Investor’s investment provides the capital necessary to continue expansion of the Menlo Labs concept, as well.

MBP’s original tenants were largely light electronic assembly and leaders in their respective fields: Cisco Systems, ETAK, Sony Electronics, and Ericsson, among others. MBP has always responded to market needs, and over the last 15 years has transitioned to mostly life science, with some green tech, clean tech and a few electronics firms. Today, MBP’s largest tenant is Acclarent, a very successful medical device manufacturer and division of Johnson & Johnson. Other significant tenants include: Intersect ENT, another medical device manufacturer; Circuit Therapeutics; Kateeva; Vello Systems; Auxogyn; NVS Technologies; and, Reprise Medical.

About Tarlton Properties
Tarlton Properties, Inc., (TPI) founded in 1980 and headquartered in Menlo Park, Calif., provides commercial property development and asset management services ranging from brokerage to receiverships as well as investment opportunities with selected properties. TPI’s full development capabilities are illustrated by its largest project, the award-winning, 50-acre, 900,000-square-foot Menlo Business Park. TPI has developed and redeveloped numerous other properties in the area, both as a principal and for other owners, including 1.5 million square feet of REO properties for institutional clients, multi-tenant office buildings, R&D complexes, warehouse facilities, an underground parking garage and two shopping centers. For detailed information, visit: www.tarlton.com

About Principal Real Estate Investors
Principal Real Estate Investors manages or subadvises $47.8 billion in commercial real estate assets. The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group.

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