Why Longfellow Is Betting on San Diego

Longfellow Real Estate Partners is aggressively expanding in the San Diego market, with plans to grow its life science and creative office portfolio in the market. In its latest strategic efforts, the investor has acquired Sycamore Creek Research Park in the Sorrento Valley and has named Newmark Knight Frank as its strategic leasing partner to grow its portfolio.

“San Diego offers a great environment for life science companies to thrive and we see exceptional growth in the biotech space here looking forward,” Nick Frasco, West Coast managing director at Longfellow, tells GlobeSt.com. “San Diego provides a strong existing ecosystem for startups and established companies alike, which, coupled with the constant inflow of a skilled STEM workforce from our world-class universities, high quality of living, and constrained supply will continue to drive the region’s life science real estate market fundamentals.”

Longfellow already has a 450,000-square-foot portfolio in the market, which it plans to reposition and upgrade. With high demand for lab space, the repositioning will focus on building state-of-the-art lab space. Frasco says the firm also plans to build “collaborative office space, best-in-class amenity areas, and an unparalleled tenant services program.” In addition, the firm will peruse more acquisition opportunities, but doesn’t have any specific goals.”

Frasco says the Sycamore Creek Research Park, an 86,788-square-foot property located at 10655, 10665, and 10675 Sorrento Valley Road with 70% vacancy, acquisition fit perfectly into Longfellow’s goals for the market because it was an underutilized campus and a good fit for lab conversion. “Its location in close proximity to our existing Sorrento Valley portfolio provides an ideal synergy and expands the space options with which we can serve our existing and prospective customers,” he adds. The firm purchased the property for $26.8 million from West Coast Capital Partners.

Longfellow calls its new partnership with NKF “integral” to the success of the strategy. NKF’s senior managing directors Steve Bruce and Chris High, associate Conor Evans and brokerage services specialist Aubri Steele, will handle leasing for the portfolio. “We’re very excited about our partnership with NKF whom we recently brought on to represent our entire Sorrento Valley portfolio,” says Frasco. “The team will bring a uniquely strategic approach to their agency representation services and an exceptional work ethic, which will be integral to the success of our business plan.”