Key Takeaways
- • Lift Partners acquired a 37,000-square-foot vacant industrial building and adjacent surface parking at 3575 Haven Avenue in Menlo Park for approximately $25 million, marking the city's most expensive industrial real estate sale since 2015.
- • The off-market transaction closed September 14, 2022, at an effective price of $10.8 million per acre and $676 per square foot, reflecting Menlo Park's constrained industrial supply and high entry barriers.
- • The San Francisco-based value-add investor funded the acquisition through its $205 million third discretionary fund, which targets West Coast office and industrial properties; Menlo Park represents the fund's fourth and fifth acquisitions to date.
- • The 1981-built property was previously occupied by AM Party Rentals, which vacated at the time of sale; Lift plans interior improvements including toilet rooms, break rooms, and assembly space to attract research-and-development and warehouse tenants.
- • The deal demonstrates ongoing institutional investor appetite for Bay Area industrial assets as logistics space commands premium valuations amid supply constraints.
Summary
Lift Partners, a San Francisco-based real estate investment firm specializing in value-add industrial and office properties, has entered the Menlo Park market through the acquisition of 3575 Haven Avenue and an adjacent surface parking lot for nearly $25 million. The off-market sale closed September 14, 2022, but was not previously disclosed. The transaction represents Menlo Park's most significant industrial real estate trade in seven years and underscores the difficulty of acquiring industrial assets in the tightly held Peninsula market.
The property comprises a single-story, 37,000-square-foot industrial building constructed in 1981, plus approximately half an acre of surface parking immediately to the north. Lift paid approximately $10.8 million per acre for the combined holdings, resulting in a per-square-foot valuation of $676. The seller was a Palo Alto-based limited liability company. The building's sole tenant, AM Party Rentals, vacated at the time of the most recent sale; the property had remained vacant through the acquisition process.
Lift acquired the Menlo Park assets through its third discretionary fund, which closed in 2022 with $205 million in commitments from endowments and private investors. According to the firm's investment profile, the fund targets value-add office and industrial properties along the West Coast. The Menlo Park acquisition represents the fund's fourth and fifth deals to date, following two acquisitions in Washington State and one in Southern California. Michael Murray represented Lift Partners in the transaction.
The company plans limited but strategic interior improvements to enhance the property's appeal to prospective tenants. Planned modifications include construction of toilet rooms in the office and warehouse areas, addition of break rooms, and creation of assembly space suitable for research-and-development users. These improvements reflect Lift's value-add investment strategy of acquiring vacant or underutilized industrial properties, implementing operational or physical upgrades, and repositioning assets for higher-value tenancies.
The Menlo Park acquisition aligns with broader institutional investor focus on Bay Area industrial real estate as logistics space commands premium pricing amid supply constraints. Lift's entry into the Menlo Park market follows its prior Peninsula activity; the firm also owns the 21,906-square-foot property at 2500 Old Middlefield Way in Mountain View, acquired in 2018. The transaction reflects the competitive intensity of Bay Area industrial investment, where major institutional players such as Prologis continue to deploy significant capital into regional portfolio acquisitions.
The property comprises a single-story, 37,000-square-foot industrial building constructed in 1981, plus approximately half an acre of surface parking immediately to the north. Lift paid approximately $10.8 million per acre for the combined holdings, resulting in a per-square-foot valuation of $676. The seller was a Palo Alto-based limited liability company. The building's sole tenant, AM Party Rentals, vacated at the time of the most recent sale; the property had remained vacant through the acquisition process.
Lift acquired the Menlo Park assets through its third discretionary fund, which closed in 2022 with $205 million in commitments from endowments and private investors. According to the firm's investment profile, the fund targets value-add office and industrial properties along the West Coast. The Menlo Park acquisition represents the fund's fourth and fifth deals to date, following two acquisitions in Washington State and one in Southern California. Michael Murray represented Lift Partners in the transaction.
The company plans limited but strategic interior improvements to enhance the property's appeal to prospective tenants. Planned modifications include construction of toilet rooms in the office and warehouse areas, addition of break rooms, and creation of assembly space suitable for research-and-development users. These improvements reflect Lift's value-add investment strategy of acquiring vacant or underutilized industrial properties, implementing operational or physical upgrades, and repositioning assets for higher-value tenancies.
The Menlo Park acquisition aligns with broader institutional investor focus on Bay Area industrial real estate as logistics space commands premium pricing amid supply constraints. Lift's entry into the Menlo Park market follows its prior Peninsula activity; the firm also owns the 21,906-square-foot property at 2500 Old Middlefield Way in Mountain View, acquired in 2018. The transaction reflects the competitive intensity of Bay Area industrial investment, where major institutional players such as Prologis continue to deploy significant capital into regional portfolio acquisitions.
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