Rare core life science offering in heart of Research Triangle acquired by investor team that includes RTP mainstay, Longfellow Real Estate Partners
CHARLOTTE, N.C., August 1, 2019 – JLL announces that it has closed on the sale of a core life science portfolio located in the heart of the Research Triangle, North Carolina, one of the top innovation hubs in the U.S. The 1.34 million-square-foot portfolio, consisting of 18 buildings on four campuses, has been sold to an affiliate of Longfellow Strategic Value Fund, LLC, in a transaction valued at approximately $405 million.
JLL marketed the portfolio on behalf of the seller, Bain Capital Real Estate, and procured the buyer, Longfellow Real Estate Partners in its Longfellow Strategic Value Fund.
The portfolio consists of 18 buildings located within Keystone Technology Park and Imperial Center for a total of 1,336,560 square feet. Currently 94% leased, the portfolio boasts a diverse, intellectual tenant roster with 51% of tenants housing mission critical operations on site. The buildings feature a dynamic STEM ecosystem with state-of-the-art buildouts and robust amenities, including fitness centers, outdoor amenity space and lounges. The portfolio benefits from its location in and adjacent to the world-renowned Research Triangle Park, which is home to some of the world’s leading life science innovators and was recently ranked one of the top five life science clusters in the nation. It has 12 nearby colleges and universities, which combined produce the most life science doctorates in the nation. Additionally, the portfolio is positioned along the Interstate 40 corridor providing excellent access to a network of major transportation thoroughfares and the Raleigh-Durham International Airport.
Longfellow already has a successful history with the properties since they previously owned, leased, refurbished, and/or managed all of them with Bain and other investment partners. In addition, Longfellow is developing the nearby Durham Innovation District (aka Durham.ID).
The JLL Capital Markets team representing the seller consisted of Managing Director Scot Humphrey, Senior Managing Directors Ryan Clutter, Chris Norvell and Coleman Benedict, and Director Zack Drozda.
“The RTP portfolio has played a key role in positioning Longfellow as the market leader in the Class A life sciences and tech space,” said Longfellow Partner Jessica Brock. “We are excited to continue our long running association with these premier assets.”
“The Research Triangle life science portfolio presented a rare opportunity for a buyer to acquire a critical mass of high-quality life science properties in a top-tier innovation market,” Humphrey said. “This was a set of buildings that were aggregated and transformed into one of the most sought-after offerings we have ever had the pleasure of working on.”
“Raleigh-Durham continues to be a thriving market for institutional investment capital while also emerging as a premier life science economy in the U.S.,” Clutter added. “More and more investors are targeting the life science sector as they see a sticky tenant base and the potential to achieve outsized returns. As Raleigh continues to establish itself as a major life science node, the market will only attract more and more capital to similar opportunities.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.
About Bain Capital Real Estate
Bain Capital Real Estate was formed in 2018 and pursues investments in often hard-to-access sectors underpinned by enduring secular trends that drive long-term demand growth for real estate assets and services. The Bain Capital Real Estate team has been executing its strategy since 2010 (formerly as a part of Harvard Management Company), having invested over $4.0 billion of equity in over 400 assets across multiple sectors. Bain Capital Real Estate focuses on small to mid-sized assets where the team applies its deep industry expertise to accelerate impact and drive operational improvements. Bain Capital Real Estate’s strategy aligns with the value-added investment approach that Bain Capital pioneered and leverages the firm’s global platform and significant experience across asset classes to further bolster its insights and sourcing capabilities.
About Longfellow Real Estate Partners
Longfellow Real Estate Partners serves the unique demands of science and technology companies and focuses on the most innovative cluster locations in the U.S. The firm acquires and develops facilities in strategic locations and builds long-term relationships with research-centric organizations, including life science companies, universities, medical centers and research institutes. The principals of Longfellow have developed and managed more than seven million square feet of laboratory and high-tech space over their careers, including numerous high-profile projects on the East Coast. The company’s institutional capabilities and entrepreneurial vision enable Longfellow to deliver high-quality laboratories and innovation space while satisfying each tenant’s unique requirements. More at www.lfrep.com and on Twitter (@LongfellowREP) and Instagram.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
Contact: Ryan Clutter, JLL Senior Managing Director
North Carolina License No: 172952
Phone: +1 704 526 2800
Email: Ryan.Clutter@am.jll.com
Contact: Coleman Benedict, JLL Senior Managing Director
Limited Nonresident Commercial Real Estate Broker
Phone: +1 617 338 0990
Email: Coleman.Benedict@am.jll.com
Contact: Kristen Murphy, JLL Director, Public Relations
Phone: +1 617 338 0990
Email: Kristen.Murphy@am.jll.com
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