LaSalle and Harvest Properties Acquire Office and R&D Facility in the San Francisco Market
CHICAGO (March 13, 2017) — LaSalle Investment Management (“LaSalle”), announced that it has acquired a 126,300-square-foot office and R&D building at 1149 Chess Drive in Foster City, CA on the San Francisco Peninsula, in a joint venture with Harvest Properties who will act as the operating partner.
The property is located at the center of Foster City, which has experienced significant demand for high-end R&D space, driven primarily by the expansion of Gilead and Illumina, whose global headquarters campuses are within a block of 1149 Chess Drive. The asset is ideally positioned near Highway 92, providing access to San Mateo, East Bay, and Highway 101, which connects to San Francisco and Silicon Valley. Additionally, the property is situated within three miles of the Hillsdale and Heyward Park Caltrain stations, which provide direct access to San Francisco and Silicon Valley, and is within three blocks of shuttle locations that service these transit stations.
The property was acquired on an off-market basis, and was contingent on Harvest Properties executing a long-term lease with a well-capitalized artificial intelligence and robotics firm, for 100% of the space.
Given the long-term, single-tenant lease structure, LaSalle will have the flexibility to monetize its position in the asset, or acquire full interest and hold long-term on behalf of its client.
Steve Inglis, Portfolio Manager at LaSalle, commented: “Beyond the underlying strength of the property and favorable market fundamentals, we like the flexibility offered through the ownership structure and are confident in our operating partner’s ability to manage the asset-level performance. Off-market opportunities such as this are a great way for LaSalle to selectively increase our clients’ exposure to highly desirable R&D facilities which will continue to experience strong demand in this region, at a significant discount to neighboring submarkets with similar product.”
Erick Paulson, Managing Director of Acquisitions at LaSalle, commented: “We are pleased to once again structure a transaction with our partners at Harvest Properties, further reinforcing our unique relationship while highlighting both partners' ability to source and execute efficiently. Following our successful joint venture at Century Centre I & II in San Mateo, we look forward realizing the benefits of their operating platform at 1149 Chess Drive, and identifying additional investment opportunities in the future.”
Cushman & Wakefield provided brokerage services on behalf of LaSalle and Harvest Properties.
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, LaSalle manages approximately $68.4 billion of assets in private and public real estate property and debt investments as of Q1 2019. LaSalle's diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit http://www.lasalle.com, and LinkedIn.
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