The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2 trillion economic stimulus package, was signed into law on March 27, 2020 and is meant to provide emergency economic relief to businesses and individuals impacted by the coronavirus pandemic. The new legislation includes several policies and programs intended to benefit small businesses, including emergency lending programs, grants, and tax relief. Within the linked PDF is a summary of the relief for small businesses provided by the CARES Act.
A San Francisco real estate investment firm has snatched up two large industrial parcels spanning nearly two city blocks in the city’s Bayview District.
The adjacent parcels — 201 and 301 Toland St. — are separated by Hudson Avenue and combined make up 138,000 square feet of building area on 5.5 acres. Lift Partners, which is focused on investments in office and industrial properties along the West Coast, paid $75 million for the properties.
The property at 301 Toland is a 110,000-square-foot building with multiple tenants, while the smaller parcel 201 Toland features a 28,000-square-foot trucking terminal “with a lot of excess land” and is occupied by Google Bus, a construction company and a shuttered electrical distribution business once operated by the seller, according to Scott Mason, founder of Calco Commercial Inc., an industrial real estate brokerage firm.
Mason represented the sellers of both properties -— Premiere-One Investment and Central 99 Investments.
Both parcels are zoned for production, distribution and repair and are wedged between the I-280 and U.S. 101 freeways. The sale represents a rare opportunity along the warehouse and distribution intensive Bayshore Corridor — a high-demand area with a large percentage of construction-oriented businesses from supplier to distributors that has limited availability.
“Historically [that area] has been made up of long-term family owners, like sellers of this property, who own it for decades on end,” said Mason, calling the transaction “extremely rare.”
He estimated that there are no more than “half a dozen large scale properties that have sold in the last decade in San Francisco that are industrially oriented,” he said.
Over the past year, Lift Partners has acquired $100 million worth of assets, including a two-acre warehouse site at 6000 Third St. in the Bayview. At the beginning of this year, the firm closed its second discretionary fund with $152 million in commitments, resulting in gross buying power of $425 million, as was reported by The Registry.
San Francisco, CA. (January 7, 2020) – Lift Partners, a San Francisco-based real estate investment firm, is pleased to announce the closing of its second fund, Lift Real Estate Partners Fund II, L.P. with $152 million in commitments, which will result in gross buying power of approximately $425 million.
Similar to Fund I, which is $102M and closed in July of 2018, Fund II will target value add investments of industrial and office properties along the West Coast, utilizing local expertise and extensive relationships to acquire and reposition assets. Lift Partners has been acquiring and operating assets on the West Coast since 2015.
In the past twelve months, Lift Partners has acquired approximately $100 million worth of assets across eight properties in the Bay Area and Seattle. Recent acquisitions include 6000 3rd Street in San Francisco, CA, 1950 Marina Blvd in San Leandro, CA, 7845 & 7855 212th St in Kent, WA and 5201 1st Ave South in Seattle, WA.
Goodwin Procter LLP advised Lift Partners on the fundraise. No placement agent was involved in the fundraise.
About Lift Partners
Founded in January 2015, Lift Partners is a full-service real estate investment company focused on the adaptive re-use and repositioning of industrial and office properties along the West Coast. Lift provides asset management, leasing and construction management services for its investments on behalf of Lift Partners Fund I, a $102M discretionary fund, Lift Partners Fund II, a $152M discretionary fund and its joint-venture partners. Lift’s portfolio to date has included $350M+ in value-add investments, $75M+ of construction projects and 1.5M+ SF of assets in the Bay Area, Seattle & Southern California.
The South King County industrial market continues to build upon an active first quarter, as seen by the recent acquisition of a warehouse in Kent, Wash., by San Francisco-based Lift Partners. According to King County property records, Lift Partners purchased the 113,591 square foot building for $16.5 million, or about $145 per square foot in a transaction that closed on May 8th. The seller was R&M Investments LLC, a Federal Way-based entity associated with Tomas Risinger and Luke B. Moore.
Located at 22441 76th Ave. S., the property is located in a more commercial and industrial part of Kent and is just off of State Route 167. Laurel Graphics and Fab, Pacific Metal, Hung San Food and Sears Logistics Services all neighbor the property. According to public records, the industrial building was originally constructed in 1979.
The acquisition will add to Lift Partner’s rapidly expanding portfolio throughout the Puget Sound. Since the end of last year, the full-service real estate investment company has been on a buying spree. In November 2018, Lift acquired a utility road and warehouse located at 655 S. Edmunds St. for $18.3 million from Macmillan-Piper Inc. In March of this year, Lift purchased four industrial and office assets in Tukwila for $11.3 million. The properties are located at 1200, 1210, 1230 and 1228 Andover Park E. and include a total 219,645 square feet of property.
According to its website, Lift Partners was founded in 2015 and targets value-add industrial and office opportunities up and down the West Coast. The firm provides asset management, leasing and construction management services for its investments on behalf of Lift Real Estate Partners Fund 1, a discretionary fund with $150 million in purchasing capacity. The firm’s joint venture partners include Westbrook Partners, Acre Valley, PCCP and Blackbird. To date, Lift Partner’s portfolio includes more than $300 million in gross investments and 1.25 million square feet of assets throughout the San Francisco Bay Area, Seattle and Southern California.
San Francisco, CA (April 3, 2019) – Lift Partners Fund I acquired four properties totaling $30.55M in the Bay Area and Seattle during the first quarter of 2019. The properties, totaling 184,000 SF, are a combination of traditional warehouse, last mile and flex industrial space.
The properties are located in core industrial areas of San Francisco, Seattle and the Kent Valley.
2070 Newcomb Ave ($6.45MM) – San Francisco, CA is a 20,000 SF clear span metal building in the Bayview submarket of San Francisco. The property is directly adjacent to the multi-story industrial project under development by Prologis and is located ~4 miles from Downtown San Francisco. The property is marketed for lease by Scott Mason of Calco Commercial who also represented Lift Partners in the acquisition.
7416 228th St ($5.9MM) – Kent, WA is a 48,580 SF single-tenant manufacturing and distribution building in the North Kent Valley. The project was 100% leased to Pacific Metals at close. Lift Partners was represented by Taylor Hoff of Newmark in the transaction and will also represent Lift Partners in leasing the asset.
1206-1230 Andover Park East ($11.25MM) – Tukwila, WA is a three building, multi-tenant portfolio located in the Southcenter submarket adjacent to Home Depot and Costco. Lift Partners was represented by Taylor Hoff of Newmark in the transaction and will also represent Lift Partners in leasing the asset.
820 South Adams St ($6.9MM) – Seattle, WA is a multi-tenant industrial building in located in the SODO submarket of Seattle. The property was developed in the 1950’s and offers a unique aesthetic with the original wood truss roof system. Lift Partners was represented by Kevin Skillestad and Ed Hogan of Neil Walter in the transaction who will also market the asset for lease.
The Georgetown and Industrial District neighborhoods in South Seattle have seen a fair amount of activity in recent weeks, and a recent transaction indicates that demand around those neighborhoods continue.
On Thursday, November 29th, a utility road and a warehouse in the Industrial District sold for $18.3 million, King County records show. The buyer was Lift Partners, a real estate investment company based in San Francisco, and the seller was Macmillan-Piper Inc., a family-owned warehouse operator based in Seattle.
The transaction included two separate parcels. The first parcel, located at 4901 Airport Way S., includes a utility road sitting on 3.84 acres, according to public documents, which designate the property as “regional land use.” The adjacent parcel, located at 655 S. Edmunds St., contains a one-story transit warehouse built in 1930 that totals 15,000 square feet. According to Macmillan-Piper’s web site, the warehouse serves as the company’s Airport Way Facility. Sitting on 5.5 acres, the property includes 14 truck doors, 18 railcar spots and two covered bulk loading systems, and exports a variety of manufacturing and cargo products.
Located in South Seattle in the city’s Industrial District, the property is approximately four miles south of downtown Seattle via Interstate-5 and several blocks from the Duwamish Waterway. The building is also roughly one mile north of Seattle’s Georgetown neighborhood.
Seattle’s Georgetown neighborhood has been eyed with increasing interest from an industrial real estate perspective over the last few months, with several transactions and in-the-works projects having occurred there.
In early August, Seattle-based pet insurance company Trupanion acquired the Benaroya 6100 Building located at 6100 Fourth Ave. S. from Benaroya Company for $65 million, or roughly $283 per square foot. In early September, Seattle-based Eastlake Management sold a 40,000 square foot warehouse/manufacturing building located at 780 S. Michigan St. for $9.55 million, or approximately $238 per square foot. In mid-October, Seattle-based commercial real estate investment firm Talon Private Capital purchased the 75,048 square foot Westcore River Building—located at 303 S. River St. adjacent to the Duwamish River—for $14.5 million, or approximately $193 per square foot, from San Diego-based Westcore Properties.
Elsewhere in Georgetown, San Francisco-based developer Prologis is developing Georgetown Crossroads—located at 6050 East Marginal Way South—which is a three-story, 589,615 square foot fulfillment center. Set on a 14-acre site, the Class A development, which was scheduled for delivery in October 2018, is set to be the nation’s first multistory industrial building.
Lift Partners, a real estate operating company headquartered in San Francisco, is pleased to announce the closing of Lift Real Estate Partners Fund I, LP. The $50 million discretionary vehicle has the potential to grow to $100M in equity commitments based on market conditions and opportunities. The Fund will target valueadd and opportunistic investments in the industrial and office sectors. Lift Partners will continue to utilize its local expertise and extensive relationships to acquire, reposition and operate assets in Bay Area and Seattle MSAs which has been its practice since forming the company in 2015.
Co-Managing Partner Patrick Fisher who led the fundraise process on behalf of Lift said “The new Fund allows us to deploy approximately $150M of discretionary capital when leveraged. We’re very excited about this milestone for our company.”
Goodwin Procter LLP advised Lift Partners on the fundraise. No placement agent was involved in the fundraise.
San Francisco, CA, June 11th – CBRE announced today that is has sold 2619-2629 Seventh St in Berkeley, CA (“Berkeley Brass”) on behalf of a joint venture between Lift Partners, Acre Valley Real Estate Capital and Blackbird Investments for $9.5M ($436 PSF). Berkeley Brass is a +/- 21,800 sf warehouse / R&D building that was acquired in 2016.
Located in West Berkeley the property is 100% leased to four tenants including Enchroma, Mar Structural, Mosswood and Home Base Spirits.
“This is a unique asset,” said Mike Raffetto of CBRE who brokered the sale and also leased the building from 20% to 100% occupancy. “With tall exposed structural steel ceilings, radiant heated flooring and outdoor patio amenity space, Berkeley Brass is a bullseye for creative industrial and office space.
The Berkeley / Emeryville market remains one of the strongest in the nation. A dearth of new supply has led to record-setting land prices, rents, and property trades in core Bay Area submarkets.
San Francisco, CA, March 16, 2018– PCCP, LLC announced today that PCCP in joint venture with Lift Partners acquired a 117,500-square-foot warehouse building for $28.05 million in South San Francisco adjacent to Highway 101. The seller was the former owner-user of the building.
Located at 100 Utah Avenue, the property is just north of San Francisco International Airport, and five miles south of the City of San Francisco. The property is within the Brisbane and South San Francisco industrial market, which totals approximately 17.8 million square feet with very little available product.
“This is a unique asset,” said Mike Murray, a partner with Lift. “There are very few blocks of industrial space over 100,000 square feet available on the Peninsula, we expect this project to achieve premium rents.”
Mark Melbye of Kidder Mathews brokered the sale of the property and will represent ownership to lease the asset, which is immediately available. “The supply of industrial space continues to shrink on the Peninsula as buildings are demolished for higher and better use. At the same time, we’re seeing increased demand with last-mile delivery and advanced manufacturing requirements. We expect to see a lot of activity on the asset,” said Melbye.
The San Francisco Bay Area industrial market remains one of the strongest in the nation. A dearth of new supply has led to record-setting land prices, rents, and property trades in core Bay Area submarkets. The South San Francisco market is one of the most supply-constrained areas within the entire Bay Area industrial market, having seen virtually no new industrial construction for the past 20 years, despite exceptional tenant demand for close‐in San Francisco distribution locations.
“We are pleased to partner with Lift on this opportunity,” said Erik Flynn, managing director with PCCP. “This asset is well positioned to serve the market due to the excellent location and building quality. We expect to receive a great deal of interest for single-tenant occupancy, due to the rarity of finding such a large block of space within the South San Francisco market.”
New York City-based Morgan Stanley Real Estate and San Francisco-based Lift Partners have come together to acquire a 148,935 square foot warehouse/distribution industrial building in Hayward located at 30526 San Antonio Street in Hayward for $15 million, according to sources familiar with the transaction.
Prior to the sale of the property, the asset was 100 percent vacant. “During the escrow period on the transaction there was a lease signed for this property,” says Patrick Fisher, a principal and co-founder of Lift Partners. He declined to comment on the purchase price of the property or the lease on the asset. This was due to a non-disclosure agreement the buyer had signed with the seller, San Francisco-based Prologis.
The lease for the property was signed with Rapid Displays, a major player in the retail merchandising display solutions. It moved into the property when the sale transaction was completed at the end of February. The Oakland office of Colliers International represented the tenant in the transaction. Those involved from Colliers were Greig Lagomarsino, executive vice president, and Nick Ousman, vice president.
The warehouse/distribution property will have a small amount of office space. The land for the single building covers six acres.
Lift Partners as a company was formed in January of last year. This is the first transaction the company has completed with Morgan Stanley. One of its principals and co-founders is Chris Freise. He had done transactions in the past with Morgan Stanley when he worked for LBA Realty. At that company, he was a transactions director on an 11 million square foot portfolio in Northern California that included acquisitions, development, leasing and dispositions.
Morgan Stanley declined to comment when contacted for this story. Lift Partners is looking to grow its portfolio with investments in both office buildings and industrial properties. According to its Web site, the company seeks value-add kind of transactions. It seeks transactions in a variety of markets like the San Francisco Bay Area, Seattle and Southern California.
The Oakland office of Cushman & Wakefield represented both the buyer and the seller of the property Hayward. “Never before in my 32 years in the real estate business was there a lease signed in the escrow period. Morgan Stanley was prepared to buy the property whether or not there was a tenant in the building,” says Jay Hagglund, executive managing director with Cushman & Wakefield. His company also represented the new owner on the lease of the property.
The asset was one of the properties that Prologis had acquired as part of its acquisition last year of KTR Capital Partners. The asset is located in a very tight industrial market. There is a vacancy of 1.9 percent for industrial space in the 880 Corridor, as of the end of 2015. The property in Hayward has around 6,000 square feet of office space and the balance is considered to be warehouse/manufacturing.