Key Takeaways
- • Lift Partners acquired a vacant 37,000-square-foot industrial building and ~0.5 acres of surface parking at 3575 Haven Avenue in Menlo Park for approximately $25 million, closing September 14, 2022—marking the city's priciest industrial real estate transaction in seven years.
- • The per-acre acquisition price of $10.8 million underscores the competitive pricing dynamics in Menlo Park's constrained industrial market, reflecting significant entry barriers for new operators.
- • The property, completed in 1981 and vacant following the previous tenant's departure, is planned for interior improvements including new toilet rooms, break rooms, and assembly space to attract research-and-development and office tenants.
- • Lift Partners financed the acquisition through its third real estate fund ($205 million commitment), which closed in 2021 with backing from endowments and private investors; this marks the fund's fourth and fifth acquisitions following deployments in Washington and Southern California.
Summary
Lift Partners, a San Francisco-based real estate investment company, has completed its entry into Menlo Park's industrial market with the acquisition of a single-story industrial property and adjacent surface parking for nearly $25 million. The off-market transaction closed on September 14, 2022, at 3575 Haven Avenue, representing the highest-priced industrial real estate sale in the city within the preceding seven years.
The acquisition price of approximately $10.8 million per acre reflects the substantial premium attached to Menlo Park's constrained industrial inventory. The property—a 37,000-square-foot building constructed in 1981 and last sold in 1998—was acquired in a vacant state following the departure of AM Party Rentals, its sole tenant at the time of the most recent sale. According to sources familiar with the transaction, Lift Partners plans targeted interior improvements to enhance the asset's appeal to prospective tenants, including construction of toilet facilities in office and warehouse sections, addition of break rooms, and creation of assembly space specifically designed for research-and-development users.
Lift Partners deployed capital for this acquisition through its third real estate fund, a $205 million vehicle that closed in 2021 with commitments from endowments and private investors. The fund targets value-add office and industrial properties along the West Coast. The Menlo Park properties represent the fund's fourth and fifth acquisitions to date, following prior deployments in Washington State and Southern California.
The transaction demonstrates the strategic difficulty of breaking into Menlo Park's industrial market, where constrained supply and pricing pressures create substantial hurdles for new entrants. Lift Partners' acquisition reflects the fund's thesis of acquiring dormant or underutilized industrial assets and repositioning them for institutional and research tenants seeking Bay Area proximity with premium facilities.
The acquisition price of approximately $10.8 million per acre reflects the substantial premium attached to Menlo Park's constrained industrial inventory. The property—a 37,000-square-foot building constructed in 1981 and last sold in 1998—was acquired in a vacant state following the departure of AM Party Rentals, its sole tenant at the time of the most recent sale. According to sources familiar with the transaction, Lift Partners plans targeted interior improvements to enhance the asset's appeal to prospective tenants, including construction of toilet facilities in office and warehouse sections, addition of break rooms, and creation of assembly space specifically designed for research-and-development users.
Lift Partners deployed capital for this acquisition through its third real estate fund, a $205 million vehicle that closed in 2021 with commitments from endowments and private investors. The fund targets value-add office and industrial properties along the West Coast. The Menlo Park properties represent the fund's fourth and fifth acquisitions to date, following prior deployments in Washington State and Southern California.
The transaction demonstrates the strategic difficulty of breaking into Menlo Park's industrial market, where constrained supply and pricing pressures create substantial hurdles for new entrants. Lift Partners' acquisition reflects the fund's thesis of acquiring dormant or underutilized industrial assets and repositioning them for institutional and research tenants seeking Bay Area proximity with premium facilities.
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