Burlingame, CA

Case Study

Gordon Brothers Acquires Medical Office Building for Life Sciences Conversion

Date July 21, 2021

In June 2021, Gordon Brothers acquired 1828 El Camino Real, a 64,835-square-foot building on 0.87 acres in Burlingame, California, as a value-add conversion to a life sciences building with our joint venture partner Sansome Street Advisors (SSA), a San Francisco based commercial real estate firm.

SSA was looking for a partner who was interested in the life science conversion business plan and who could recapitalize the project quickly. The firm reached out to the Gordon Brothers’ Real Estate team for our ability to invest our own capital, streamline the underwriting and approval process, and close quickly.

The property is a multi-tenant, eight-story building that was 44% leased to life science tenants, 35% leased to medical office tenants and 21% vacant. Immediately after purchasing the building, our team and SSA began the conversion of the medical offices to life science spaces and marketing the available space. We anticipate completing the conversion of the remaining suites to life science tenancies within a two- to three-year holding period.

The property was of great interest to Gordon Brothers as the San Francisco Bay Area life science market is home to over 250 life science firms. The peninsula alone comprises 53% of the total life science market in the Bay Area.

Our operating partners benefit from Gordon Brothers’ reputation as a knowledgeable and actionable investor. Our firm specializes in structuring complex, multi-asset transactions in the retail, commercial and industrial sectors. We partner with operating companies and their investors to help overcome operational challenges during transformation.

Gordon Brothers invests in compelling value-add opportunities including distressed, transitional and excess corporate real estate. Our firm offers various equity strategies including asset acquisitions, joint venture equity investments and sale leasebacks. We purchase existing notes and offer various debt strategies to owners including senior loans, bridge loans and mezzanine financing.

In addition to our real estate investment platform we offer a variety of real estate services such as portfolio reviews, sale of real estate and lease restructuring, including terminations, renewals, site selection and inhouse real estate department augmentation.