First Phase of State-of-the-Art Life Science
Campus to Feature Two High-Quality, Purpose-Built Life Science
Buildings Conveniently Located Adjacent to Highly Accessible Public
Transit Options, Including BART and Caltrain
NEW
YORK, Jan. 18, 2023 /PRNewswire/ -- A joint
venture between the Real Estate business within Goldman Sachs Asset
Management ("Goldman Sachs") and Lane Partners ("Lane") today
announced the completion of a recapitalization of Southline Phase
I, a leading, transit-oriented life science development in South
San Francisco. As part of the recapitalization, an affiliate of
Beacon Capital Partners ("Beacon"), a leading real estate
developer, owner, and manager of life science and office
properties, has joined the ownership group for the first phase of
development. The project has also secured construction financing
from Square Mile Capital and Bank OZK. Financial terms of the
recapitalization and financing were not disclosed.
Centrally located in South San Francisco within walking distance
of both the Bay Area Rapid Transit (BART) and Caltrain transit
lines, the state-of-the-art, LEED Gold Southline development
consists of an aggregated 31 acres with entitlements to build a
total of 2.8 million square feet. Goldman Sachs and Lane began
assembling the land for the Southline development in October 2017, with the overarching goal to build
one of the most innovative and sophisticated life science-focused
developments in the country.
The new ownership team has started construction on the first of
two buildings in Phase I which will total more than 715,000 square
feet. The project is designed to suit the needs of the world's most
innovative life science and technology tenants. Phase I will also
include a stand-alone amenity building featuring a fitness center,
restaurant, and café, as well as a parking garage.
"We are thrilled to form a new partnership and bring our
collective development expertise to begin construction on the first
phase of a project that we believe will provide life science and
technology companies with best-in-class space," said Michael Ungari, partner, Goldman Sachs. "It is
exciting to be able to move forward with a large-scale development
despite a volatile market environment, and we believe the quality
of our ownership team and lenders allowed us to do so."
"The completion of recapitalizing Phase I of Southline is an
extraordinary milestone for the project and we could not be more
excited about the first phase of development and the caliber of
this new partnership," said Marcus
Gilmour, principal at Lane Partners. "Southline is a
generational campus located in one of the premier life science
clusters in the world and, as such, will provide excellent transit
optionality, numerous amenities, and the ability to accommodate
tenant growth and expansion within the campus. We are very much
looking forward to seeing Southline come to life."
"We believe in the long-term strength of the Bay Area market and
are very pleased to partner with the experienced teams at Goldman
Sachs and Lane to help bring the vision of Southline to life," said
Fred Seigel, president and chief
executive officer of Beacon. "The South San Francisco location and
direct access to the San Bruno BART station truly sets it apart.
The scale and innovative approach of the development has unmatched
potential to accommodate future growth of tenant companies, making
it an optimal choice for leading companies."
Eastdil Secured advised Goldman Sachs and Lane on the
recapitalization and arranged the construction financing.
"This development presented a unique and compelling opportunity
to bring together exceptional sponsors to invest in a visionary
development that we believe has the potential to change the
landscape in one of the most dynamic and innovative life science
markets in the country," said Paul
Nelson, managing director at Eastdil Secured. "Southline
will be a model for premier biotechnology campuses across the U.S.,
and we are pleased to have supported the joint venture in achieving
this critical milestone for the first phase of the
development."
About Goldman Sachs Asset Management
Bringing together
traditional and alternative investments, Goldman Sachs Asset
Management provides clients around the world with a dedicated
partnership and focus on long-term performance. As the primary
investing area within Goldman Sachs (NYSE: GS), we deliver
investment and advisory services for the world's leading
institutions, financial advisors and individuals, drawing from our
deeply connected global network and tailored expert insights,
across every region and market—overseeing more than $2 trillion in assets under supervision worldwide
as of September 30, 2022. Driven by a
passion for our clients' performance, we seek to build long-term
relationships based on conviction, sustainable outcomes, and shared
success over time. Goldman Sachs Asset Management invests in the
full spectrum of alternatives, including private equity, growth
equity, private credit, real estate and infrastructure. Established
in 1991, the Real Estate business within Goldman Sachs Asset
Management is one of the largest investors in real estate with over
$50 billion in capital invested since
2012 across the spectrum of investment strategies from core to
opportunistic. Our global team invests across all sectors with deep
expertise across the capital structure, in assets ranging from
single properties to large portfolios, through senior mortgages,
mezzanine debt and equity. Follow us on LinkedIn.
About Lane Partners
Lane Partners specializes in
transforming and developing institutional quality real estate in
Northern California by
restructuring and repositioning, with the imagination to bring new
access and new value. Through smart acquisition, development and
management, Lane Partners has transformed millions of square feet
of Silicon Valley real estate into properties that perform. Since
2006, Lane Partners has been the local force that makes global
waves.
About Beacon Capital Partners
Beacon Capital Partners
("Beacon") is a leading private real estate investment firm, owning
and operating office and life science properties. The firm has a
75-year legacy of successful real estate development, management,
and transformation of workplaces. Since 1998, Beacon has raised ten
commingled investment vehicles, as well as multiple joint venture
vehicles and co-investments, totaling over $19 billion of equity capital commitments from
public and corporate pension funds, financial institutions,
endowments, foundations, and other U.S. and non-U.S. institutional
investors. Today, Beacon manages over $14
billion of real estate and owns and operates a portfolio
spanning more than 29 million square feet across 14 U.S. markets.
For more information, please visit beaconcapital.com.
About Bank OZK
Bank OZK (Nasdaq: OZK), through its
Real Estate Specialties Group (RESG), provides financing on
commercial real estate projects throughout the nation. RESG is
considered a preeminent, market-leading construction lender focused
on senior secured financing for a variety of property types
including mixed use, multifamily housing, condominiums, office,
hospitality, life sciences, industrial and retail. During the five
years ended September 30, 2022, RESG
originated approximately $39.33
billion in new loans. For more information, visit
www.ozk.com.
About Square Mile Capital Management LLC
Square Mile Capital Management LLC is an integrated
institutional real estate and investment management firm based in
New York. The firm has an
established history of successful investing in commercial real
estate at all points in the market cycle. Square Mile
Capital's experience supplying flexible equity and debt capital
solutions in diverse property sectors and across the risk spectrum,
combined with its integrated national sourcing and
investment platform, facilitates the creation of value for its
investors, partners, borrowers and counterparties. Square Mile
Capital's commercial real estate debt platform provides customized
capital solutions for real estate owners and developers throughout
the United States utilizing its
broad investment platform, product expertise and research
resources. The firm seeks to identify the impact of long-term
trends on real estate values and target its equity investments on
key investment strategies likely to benefit from such trends.
For more information, visit
www.squaremilecapital.com.
Contacts
Goldman Sachs
Avery
Reed
avery.reed@gs.com
(o) 212-902-5400
Lane Partners:
Marcus J.
Gilmour
marcus@lane-partners.com
(o) 650-665-7085
Beacon Capital Partners
Maureen Richardson, River Communications
mrichardson@riverinc.com
(o) 914-686-5599
(c) 914-434-6033
Eastdil Secured
Jack
Kelleher / Erik Carlson
Joele Frank, Wilkinson Brimmer
Katcher
(o) 212-355-4449
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SOURCE Goldman Sachs Asset Management; Lane Partners; Beacon
Capital Partners