Longfellow Real Estate Partners has acquired a three-building Creekside office campus in Sorrento Valley as the Boston-based firm further expands its San Diego holdings with more purchases likely.
The deal comes as the market for life and industrial property continues to shine as a bright spot in the region’s commercial real estate market during the COVID-19 pandemic.
Longfellow Real Estate Partners declined to disclose the purchase price or the seller of the Creekside property at 10220, 10240 and 10260 Sorrento Valley Road.
Since its first foray into the San Diego market in November 2018, Longfellow Real Estate Partners has been steadily buying up property and converting it to lab and office space for life science firms.
With its latest acquisition of the 124,473 square-foot Creekside campus, the firm has assembled a San Diego portfolio of more than 660,000 square feet.
“We’re continuing to grow because we’re continue to see strong demand for this in Sorrento Valley in San Diego,” said Nick Frasco, managing director of Longfellow Real Estate Partners.
“Creekside represents an important step towards our development of a thriving life science ecosystem in a key growth market,” Frasco said. “This is the second acquisition we’ve closed in San Diego during the pandemic, demonstrating our ability to execute transactions in challenging market environments.”
A Science Campus
Longfellow Real Estate Partners in June bought the three-building Sorrento
Tech campus at 10070, 10140 and 10180 Barnes Canyon Road from BLT Enterprises for $39 million.
Longfellow Partner Jessica Brock said that expanding the firm’s San Diego holdings “is a critical component of our national portfolio strategy.”
Located at the south end of Sorrento Valley bordering Sorrento Mesa, Creekside will become part of the firm’s nearby SOVA Science District campus, Frasco said.
SOVA Science District is the name Longfellow Real Estate Partners has given its Sorrento Valley property as it consolidates and remodels the 17 buildings into a single life science campus, spending more than $10 million on renovations.
“Our tenants at Creekside will have access to all of the amenities that we’re creating at SOVA central hub, which includes expansive outdoor areas, a brewer, fitness center, café and restaurant,” Frasco said. “We’ve finalized our first phase of the campus repositioning, which includes enhancements to all of the exterior building facades and a significant portion of the lab space has been converted.”
Most of the Creekside campus is occupied, but Longfellow Real Estate Partners said it plans to immediately renovate the 60,000 square-feet of space that is vacant.
“The exterior of the property was in great condition,” Frasco said. “The prior ownership has significantly upgraded the building exteriors and landscaping so our effort will be focused on putting a Longfellow touch on the campus, which includes personalized exterior patios and outdoor work areas for the tenants and converting the interiors to cutting edge lab space.”
Despite the pandemic, Frasco said Longfellow Real Estate Partners projects an ongoing strong market for life science property.
“The pandemic, I think, kind of resulted in a bit of a heavier focus on the biotech world,” Frasco said. “Everything we’re seeing now points to continued demand. I would say it’s hard to predict what the future is going to bring but based on what we’re seeing now, we expect the current levels of demand to continue.”
Louay Alsadek and Hunter Rowe of CBRE and Chris High and Steve Bruce of Newmark Knight Frank brokered the Creekside transaction. Newmark Knight Frank will handle leasing.
In separate deals, more than 100,000 square feet of industrial space in Carlsbad was recently leased to GenMark Diagnostics and COPAN Diagnostics, Inc.
GenMark Diagnostics leased the 73,057 square-foot NorthPointe building at 6221 El Camino Real from LINK Industrial.
Aric Starck and Dennis Visser of Cushman & Wakefield brokered the deal on behalf of LINK Industrial.
COPAN Diagnostics leased the 38,800 square-foot Carlsbad Crossroads building at 27728 Locker Ave. West from HG Fenton.
Both parties in the transaction were represented by Starck, Visser and Weston Yahn and Melanie Haynes if Cushman & Wakefield.
Terms of the leases were not disclosed.