(EDITOR’S NOTE: The building sold for approximately $338 per square foot.)
SAN JOSE, Calif. – CBRE Capital Markets has arranged the sale of The Pointe, two Class A life science/office buildings totaling 89,145 square feet in Redwood City, Calif. Scott Prosser, Joe Moriarty, Russell Ingrum and Jack DePuy of CBRE represented Vertical Ventures in their sale of the property to GI Partners for $30.1 million.
“The buildings’ flexible layout and clear heights of 14 feet can accommodate a variety of life science uses, an ideal opportunity for tenants seeking customizable space to fit their business requirements,” said Scott Prosser, executive vice president at CBRE.
The property is currently 94% leased to a diverse rent roll that includes 60,677 square feet of life science tenants. The property has a weighted average lease term of 4.8 years, providing stable in-place cash flow and near-term upside with the ability to convert the remaining office to life science as tenants expire.
The Pointe is at the heart of the emerging mid-peninsula life science cluster. The convenient central Peninsula location allows lab users the opportunity to recruit from a well-educated and well-trained employee base across the Bay Area. Stanford University and U.C. San Francisco boast two of the top 10 medical schools nationwide, while Stanford University and U.C. Berkeley tie for the No. 1 ranked biotechnology science programs in the country.
The San Francisco Bay Area life science market has outperformed other leading markets despite COVID-19’s impact on the region’s real estate market. The West Coast’s leading life science hub experienced the fastest employment growth of any leading market over the past year, attracted a record amount of venture capital of $12 billion in the first quarter of 2021, and has the lowest lab vacancy of any market.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.