Peninsula real estate draws big-time buyer for choice site along Bay

SOUTH SAN FRANCISCO — A choice South San Francisco office site that’s perched on the shores of the Bay has been bought by a veteran developer in a fresh sign of investment interest in well-located Peninsula properties.

DivcoWest, acting through an affiliate, has bought an office building site at 5000 Shoreline Ct. in South San Francisco, according to documents filed on Jan. 7 with the San Mateo County Recorder’s Office.

DW LSP 5000 Shoreline, the affiliate, paid $164.5 million for the office building, the county property records show.

The three-story building that DivcoWest bought totals 138,400 square feet, according to the PropertyShark real estate website.

The just-purchased building occupies an 8.6-acre site.

Investors have become increasingly intrigued by the prospects of buying office buildings on the Peninsula, which is deemed to be a hotbed for life sciences, medical and biotech companies.

Among some high-profile deals in recent years:

— In 2020, two landmark towers at 1 Tower Place and 2 Tower Place near Oyster Point in South San Francisco, along with a smaller office building, were bought by investment trust Ventas for a jaw-dropping $1 billion.

— In August 2021, BioMed Realty paid $160 million for properties in Redwood City and Belmont, including offices and land. Oracle was the seller.

— In September 2021, Alexandria Real Estate paid $105.3 million for the site of an old JC Penney store in San Bruno and intends to redevelop the site as an office and research complex totaling 700,000 square feet.

— In November 2021, IQHQ, a real estate firm focusing on life sciences, paid $164 million for office buildings in Redwood City. Oracle also was the seller in this deal.

— In December 2021, Steelwave paid $98 million for a site at 180 El Camino Real in South San Francisco. The real estate firm intends to develop a Safeway store along with office and research buildings, on the property, which at present is an older retail center.

In the recent transaction, Actelion Pharmaceuticals, a company that is part of Johnson & Johnson, sold the building to DivcoWest, the county public documents show.

In 2017, New Jersey-based Johnson & Johnson, a pharmaceuticals, medical device and consumer products company, bought Actelion and folded the company into J&J’s Janssen Pharmaceutical subsidiary.

Janssen Pharmaceutical maintains a local office in the 5000 Shoreline Ct. office building.



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Source:: The Mercury News – Entertainment


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