City of Newark grants permits to Buchanan Street Partners for $12 million renovation
San Jose, Calif. – July 26, 2022 – CBRE announced it will be leasing the Newark Science Center, a new life science conversion of a two-story, R&D facility. The 50,000 sq. ft. state-of-the-art life science/lab facility is located in Newark, Calif and will deliver in late 2022.
Mark Christierson, Damon Schor, and Chip Sutherland of CBRE are the leasing agents. Buchanan Street Partners, a real estate investment management firm based in Newport Beach, Calif., is managing the development on behalf of an institutional separate account relationship. Buchanan Street recently received permits from the City of Newark and immediately commenced construction of the life science improvements. Common area improvements for the property are also nearing completion.
“The highly skilled talent pool in the San Francisco Bay Area has attributed to the growth of life sciences over the last few years. We are seeing more demand from life sciences tenants and Newark has available space that provides potential occupants with greater flexibility finding affordable lab and office space in the Bay Area,” said Damon Schor, Senior Vice President at CBRE.
Located at 8100 Jarvis Avenue in Newark, the Newark Science Center is adjacent to the Dumbarton Bridge and centrally located to life science clusters on the San Francisco Peninsula and major life science companies including Boehringer Ingelheim, Cepheid, Novo Nordisk, Stanford Health, and Alexza Pharmaceuticals. Last quarter, life science vacancy in the Bay Area was 5.8 percent, with the 880 Corridor among the lowest in the region, according to CBRE.
Buchanan Street has committed more than $20 million to the conversion, which includes a new two-story lobby, outdoor trellis and seating area, and a renovated restroom core with showers. Buchanan Street will also make mechanical upgrades including the addition of control areas, ventilation and sterilization rooms, and pre-plumbed house air and electric for additional lab benches and fume hoods. The site will also include a backup generator and freight elevator for hazardous materials transportation.
“Our underwriting identified the potential for life science conversion prior to the COVID-19 pandemic, which only accelerated the market in the greater San Francisco Bay Area,” said Mark Oddo, Senior Vice President at Buchanan Street. “We remain encouraged by the robust demand and lack of quality supply coming to market in the next year in the East Bay.”
“The decision to deliver speculative improvements has proven to be the right strategy given the disruptions to the supply chain we have witnessed in the last 18 months,” said Garrison Weaver, Assistant Vice President at Buchanan Street. “Our floor plans and design will provide flexibility to prospective tenants and significantly reduce the time between lease execution and initial occupancy.”
DGA is leading the design and permitting process. Landmark Builders is the general contractor responsible for the life science improvements. AlfaTech is consulting on the mechanical, electrical, and plumbing design. South Bay Construction will complete the common area and restroom construction in August 2022.
About Buchanan Street Partners
Buchanan Street Partners is a real estate investment firm based in Newport Beach, California that focuses on investments in commercial, multifamily, and self-storage properties as well as providing loans as a direct lender. Having invested in over $7 billion of real estate assets in its 22-year history, Buchanan Street has an established track record in the commercial real estate industry. The company is comprised of a highly skilled team that has invested through multiple real estate cycles enabling them to identify opportunities and maximize value while prioritizing capital preservation. www.buchananstreet.com
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 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend 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. Please visit our website at www.cbre.com.
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