OAKLAND, Calif.--(BUSINESS WIRE)--Harvest Properties and joint-venture partner New York Life Real Estate Investors on behalf of McMorgan Northern California Value Add Development Fund I recently announced the sale of One Bay Plaza, located in Burlingame, California, to local developer/operator Woodstock Development for an undisclosed amount. Centrally located along the shores of the San Francisco Bay within one of the area’s fastest growing submarkets, the 196,000-square-foot, nine-story class A office tower was originally purchased in 2016 for approximately $273 psf.
“Three years ago, we saw an opportunity to acquire this well-located but under-performing property and add value through active lease-up, expiration management and select building improvements,” said Griff King, partner at Harvest Properties. “Given our experience operating in the Highway 92/101 corridor, we anticipated the migration of demand from the technology sector and life science industry and viewed One Bay Plaza as a great opportunity to capitalize on that growth," added King.
The Burlingame office market continues to exhibit strong leasing fundamentals supported by Google’s expansion into the north Peninsula and Facebook’s recent lease for 100% of the nearby Burlingame Point development.
“We are very pleased with the successes achieved on this investment and are appreciative of the efforts put forth on our behalf. We had confidence in our original basis and in the business strategy proposed and ultimately orchestrated. It was an enjoyable experience working with Harvest, a group with whom we hope to have further relations,” said Ross Berry, senior director at New York Life Real Estate Investors.
Paul Nelson, Stephen Van Dusen, Cartter Berg and Cameron Palmer of Eastdil Secured represented Harvest and New York Life Real Estate Investors on the transaction.
About Harvest Properties
Harvest Properties is a vertically-integrated, full-service commercial real estate investment firm that specializes in the acquisition, reposition, entitlement, development, management and financing of commercial property, primarily through joint-venture investments in Northern California. Over the last decade, Harvest has become an established leader in the marketplace by generating attractive returns for its financial partners, providing creative solutions and outstanding service. Harvest Properties’ portfolio comprises approximately ten million square feet of office, industrial, R&D and retail properties in the San Francisco Bay Area. For more information, please visit www.harvestproperties.com.
About New York Life Real Estate Investors
New York Life Real Estate Investors is a division of NYL Investors LLC, a wholly-owned subsidiary of New York Life Insurance Company. Please visit New York Life Real Estate Investors’ website at http://www.newyorklife.com/realestateinvestors for more information.
New York Life Real Estate Investors is a full service, fully-integrated real estate enterprise with more than 100 professionals. The division has market-leading capabilities in origination, underwriting, and investment in real estate equity products and related debt, including real estate equity investments, commercial mortgage loans, commercial mortgage backed securities, and unsecured REIT bonds. With over $54.5 billion in assets under management as of December 31, 2018(1), New York Life Real Estate Investors is actively seeking to acquire additional properties throughout the U.S.
(1) Real Estate Investors AUM of $54.5B is gross and includes AUA ($1.6B), and debt ($0.6B) as of 12/31/18. Net AUM for Real Estate Investors is $53.9B as of 12/31/18.