Longfellow Real Estate Partners, which invests in life science, lab and innovation space across the United States, has acquired the Palo Alto Technology Center (PATC) from KBS for $205 million.
The PATC purchase is Longfellow’s fifth West Coast acquisition since late 2018. KBS originally purchased the property in 2012 on behalf of a sovereign wealth fund.
Located just three miles from Stanford University and a short distance from the Stanford Research Park, PATC’s 10 buildings total 259,586 square feet. The campus is about 99 percent leased. Tenants include Stanford, Bill.com, Aurora Innovation and Eversight.
Located at the focal point of the modern innovation economy, Palo Alto city officials recently announced that they are poised to make the 2015 cap on new office developments in the University Avenue, California Avenue and El Camino Corridors permanent. The cap limits annual office deliveries to 50,000 square feet per year, which if made permanent would guarantee almost no new competitive products to the Palo Alto Technology Center in the coming years.
Longfellow plans to convert some of the campus to life science uses and complete capital improvements including facade enhancements, landscaping, and signage/wayfinding. In addition, Longfellow will implement its proprietary services and amenities package, Elevate, which aims to redefine workplaces with lifestyle perks.
The acquisition increases Longfellow’s portfolio to over two million square feet on the West Coast, and includes Bayshore Technology Park and PATC in the San Francisco Bay Area as well as the Inspire, Roselle and Sycamore campuses in San Diego. Longfellow’s total portfolio includes over 4.7 million square feet of life science and tech space owned and under management in innovation hubs such as Greater Boston, Philadelphia and North Carolina’s Research Triangle region.
