JLL: Strong life sciences demand fuels $82M sale of Fremont Labs
This post was originally published by Kristen Murphy of JLL on August 1, 2022.
https://www.us.jll.com/en/newsroom/strong-life-sciences-demand-fuels-sale-of-fremont-labs
SAN FRANCISCO – August 1, 2022 – JLL Capital Markets announced today that it has closed the $82 million sale of Fremont Labs, a recently renovated, Class A life sciences property totaling 89,000 square feet in Fremont, California.
JLL represented the seller, a joint venture between Jadian Capital and Graymark Capital, and procured the buyer, Diversified Healthcare Trust (DHC), which is managed by The RMR Group. This acquisition marks DHC’s fourth life science acquisition in the San Francisco Bay area and expands the company’s total Bay Area holdings to six.
Fremont Labs is positioned on a 4.7-acre site at 47071 Bayside Pkwy within the Central I-880 corridor of San Francisco. Given San Francisco’s rank as the second largest life sciences market in the U.S., the property is surrounded by major life sciences users, is within close proximity to a highly educated labor pool and is close to the world-class research institutions at San Jose State University, Stanford University and Santa Clara University.
Recently renovated in 2022, Fremont Labs is fully leased as the headquarters location for Alamar BioSciences, a pre-clinical stage proteomics (disease detection) company. The two-story building features collaborative open floorplans, premium lab space with airlocks, backup power, double loading docks and 21’ ceiling heights, all ideal attributes for life sciences tenants. In addition, tenants have access to an on-site fitness center and cafeteria. Overall, Fremont Labs offers 56% office, 30% lab and 14% manufacturing and warehouse space.
The JLL Capital Markets team representing the seller was led by Managing Director Adam Lasoff, Senior Directors Dan Renz and Erik Hanson, Director Michael Manas, Senior Managing Director Will Connors, Vice President Cheri Pierce and Analyst Johnny VanDerVelden.
“Jadian and Graymark are the first investors in this market to successfully execute on a life science conversion and exit for core pricing,” Lasoff said. “This is in part due to the strength of the Bay Area life sciences and biotech market, which is one of the strongest in the country.”
About Graymark Capital
Graymark Capital, Inc. is a real estate investment firm headquartered in San Francisco, California that invests in commercial property throughout the Western U.S. The company has acquired 3.5 million square feet of institutional quality buildings valued at $1.7 billion since 2012. Through its life science initiative, Gray Matter, Graymark has purchased ten life science assets in the San Francisco Bay Area, San Diego, and Austin totaling over 1.3 million square feet. The tenants in the portfolio range from Fortune 500 companies to early stage growth companies.
About Jadian Capital
Founded in 2017, Jadian is a New York and Stamford, Connecticut based investment firm targeting opportunities throughout the capital structures of real estate, related assets and asset-intensive businesses. With a value-oriented, opportunistic approach, Jadian’s core mission is to craft investments in undervalued, high-quality assets. The firm’s strategy focuses primarily on non-core sectors with characteristics likely to lead to long-term fundamental outperformance. Jadian actively manages a portfolio of investments across the capital structure and its principals have a history of successfully executing investments across cycles, with diverse expertise in platform creation, distress, equity and credit.