Case Study

Summary

Oyster Point Business Park is an approximate 25-acre development site comprised of a six-building, industrial business park of 404,215 square feet and a 235-berth marina comprising 8,850 total linear feet of dock space situated in South San Francisco, California.

Situation

  • Sensing the bio-tech market was about to accelerate, AMB Property Corporation (on behalf of its separate account client) retained Orchard in 2005 to evaluate the property as a re-development opportunity for bio-tech.
  • Orchard evaluated the site on an “as is” basis versus that of a new bio-tech project.
  • Orchard met with the City and other governmental agencies to produce several schemes to maximize density of the site.
  • Notwithstanding the speculative re-development potential of the site, given the overall size and cost of the project, AMB’s client elected to continue operating the property while seeking to secure a bio-tech tenant to mitigate the leasing risk.

Results

  • Orchard’s re-development analysis helped to illuminate the potential value from re-developing the site for bio-tech use.
  • Ultimately, AMB (on behalf of its client) sold the property to an institutional buyer [i] who acquired it with the intention of re-developing it for bio-tech use and [ii] for considerably more than its original acquisition cost.