Boston-based Longfellow Real Estate Partners has just invested $112M on the San Diego Life Sciences industry by expanding their “Inspire Portfolio”. This portfolio is leased (95%) to 81 different life science, tech, and R&D tenants. After over $10M in renovations and upgrades to attract tenants who desire creative office and life science space, Parallel Capital has sold this investment for a substantial profit.
“If you have a longer-term investment horizon, you can capitalize on the attractive debt markets and lock down your property and generate attractive cash-on-cash returns” advises Parallel’s CEO Matt Root. “There is a wall of capital, both debt and equity, chasing real estate today. As long as capital continues to flow to the investment class, prices will hold. When capital flows slow to real estate, prices will be impaired.”
The buyer, Longfellow Real Estate Partners, has other significant tech and life science space holdings, but this is the first acquisition in San Diego. “We set our sights on San Diego for its prestigious reputation as a life sciences cluster, and we look forward to future growth on the West Coast” said Longfellow’s Managing Director Jessica Brooks.