Praelium Buys 17-Building R&D Portfolio Near Santa Barbara for $235M

Irvine-based investment firm Praelium Commercial Real Estate has acquired a 17-building, 733,497-square-foot office, industrial and R&D portfolio in Goleta, Calif., just west of Santa Barbara, for $235 million, according to PropertyShark records. 

Majestic Asset Management sold the properties as part of a recapitalization sale, and Blackbird Investment Group, and H.I.G. Capital were also involved in the deal, according to brokerage firm Colliers. An affiliate of Starwood Property Trust provided a $153.5 million acquisition loan tied to the sale, records show. 

Majestic had assembled the five-campus portfolio, dubbed Tech Park @ Goleta, in separate deals throughout the late 2010s and early 2020s. The properties are bounded by Hollister Avenue, Bollay Drive, Castilian Drive, Cremona Drive and Ward Drive. The deal is one of the largest property sales ever in Santa Barbara County.

Colliers’ Sean Fulp, Michael Kendall, Mark Schuessler, Gian Bruno, Kenny Patricia and Blake Hammerstein arranged the deal alongside Hayes Commercial Group’s Francois DeJohn and Caitlin Hensel. CBRE’s Brad Zampa and Mike Walker arranged the debt. Tenants at the portfolio include Lockheed Martin, Umbra Space and IT equipment provider Curvature. 

“Goleta’s combination of entrenched technology and aerospace tenants, limited new supply, and strong institutional ownership continues to support long-term investor conviction in the market,” Fulp said in a statement. “We continue to see sophisticated capital prioritize high-quality R&D and industrial assets in Goleta, given the market’s durable fundamentals and long-term growth trajectory.”

Other major firms such as Raytheon and Northrop Grumman have long-term footholds in Santa Barbara County, and its proximity to Vandenberg Space Force Base make it a very attractive option for companies looking to escape the bustle of L.A. County.

Nick Trombola can be reached at ntrombola@commercialobserver.com.