Lift Partners is buying back an industrial building in the Peninsula after four years under different ownership.
The San Francisco-based firm acquired 100 Utah Avenue in South San Francisco in a sale-leaseback deal for $31.8 million, the San Francisco Business Times reported.
The seller of the 4.4-acre property was Goodwill San Francisco Bay, which anchors the site and holds a short-term lease there. Lift owned the 120,000-square-foot building from 2018 to 2021 before selling it to Goodwill.
Lift Partners’ purchase of the property comes after the company closed its fourth discretionary fund, which provided Lift with about $500 million in new capital to deploy for acquisitions such as these. “We’re focused on hyper-infill opportunities along the West Coast — Southern California and the Bay Area right now,” Patrick Fisher, a managing partner at Lift, told the Business Times, noting the influx of “a diverse mix of tenants.”
Lift has made a play in the Peninsula in the past. In 2022, the real estate firm paid approximately $10.8 million for a vacant 39,560-square-foot industrial building at 3575 Haven Avenue in Menlo Park. It bought that property using its third discretionary fund, valued at $205 million. The company also owns the 21,906-square-foot 2500 Old Middlefield Way building in Mountain View, which it acquired in 2018.
The Peninsula industrial property market has been attracting large investors as logistics space becomes an increasingly hot commodity in the Bay Area. Last month, Prologis — the world’s largest industrial real estate company — spent $314.5 million for an 11-building portfolio in Crocker Industrial Park in Brisbane, the neighboring city north of South San Francisco. That transaction marked the largest industrial property deal in the Bay Area this year.
As of the end of the third quarter, the Peninsula had about 800,000 square feet of active industrial tenant demand, according to CBRE data cited by the Business Journal. Industrial availability was approximately 7 percent and vacancy was about 5.5 percent, which are notably low figures when compared to the rest of the region, per CBRE. At the same time, industrial supply in the Peninsula has continued to shrink. — Chris Malone Méndez
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