REAL ESTATE NEWS

The Tech Park @ Goleta Portfolio, a landmark Class A, 17-building technology campus comprised of five business parks spanning 733,497 square feet in the Central Coast city of Goleta, California, has been recapitalized, underscoring the shift that has taken place in the city, making investment more attractive.

The transaction marks one of the most notable trades in real quantum-ready real estate, a market defined by limited supply and muted transaction activity.

A Quantum-Ready Market

Sean Fulp, vice chair of office capital markets at Colliers and the lead broker on the deal, noted that Goleta has become a real quantum-ready real estate market with real strategic relevance.

"This portfolio was assembled around that view," he said.

"What was once considered a niche coastal submarket has developed into one of the more credible quantum and advanced technology hubs in the country, supported by a strong talent pipeline from UCSB and by infrastructure that serves aerospace, defense, and other highly specialized users."

He said the demand isn't hypothetical; it's already there. Google's footprint is the clearest example. Since entering Goleta in 2018 with roughly 45,000 square feet, it has expanded to more than 315,000 square feet across leased, owned and planned space. It has publicly identified the city as the headquarters of its Quantum AI division.

"What makes the opportunity even more compelling is that the supply story is not changing. Goleta is hard to replicate, hard to entitle, and largely built out," Fulp said.

"That has helped preserve occupancy, support rent growth, and reinforce long-term demand for exactly the kind of space this portfolio provides. The tenant roster is already aligned with the sectors driving that growth, which puts the portfolio in a strong position going forward."

Goleta fits the profile of capital rotation into alternative markets, Fulp said.

"Institutional capital is no longer chasing markets just because they are familiar," he said. "It is getting more disciplined and moving toward places where the underlying fundamentals are harder to argue with.

Goleta Has Plenty of Demand Drivers

Goleta offers a deep tenant base, durable demand drivers and one of the most supply-constrained environments in Southern California.

"Opportunities to gain meaningful scale are extremely limited, which is part of what made this transaction so compelling," Fulp said.

"That same pattern is showing up in other secondary and specialized markets across the country; capital is gravitating toward locations where the demand is structural, the barriers to entry are real, and the story is backed by fundamentals rather than momentum alone."

He added that recapitalizations are emerging in the Santa Barbara County area.

"Capital did not disappear; it just became more selective," Fulp emphasized.

In such an environment, recaps are a practical solution for owners of well-performing assets. Instead of forcing a traditional exit, they can bring in institutional equity, create liquidity and still maintain exposure to future upside.

"That structure works when the asset is performing, and the sponsorship is credible," Fulp said. "Institutions will still write into those situations when they have conviction in both. In this case, the fundamentals supported it, and so did the ownership."

Portfolio Supports Broad Uses

The portfolio was designed to support a broad range of uses, including office, flex, laboratory and industrial. Approximately 58% of the portfolio is dedicated to industrial and R&D space, reflecting strong demand from users across advanced manufacturing, aerospace, defense, medical devices and emerging technologies.

The asset is on California's Central Coast and near the University of California, Santa Barbara. Goleta has emerged as a hotbed for technology, aerospace, defense and medical device companies. The region benefits from a strong research ecosystem, a highly educated workforce and a collaborative business environment that fosters commercialization and growth.

Alongside Fulp on the deal were the Colliers' team of Michael Kendall (vice chair), Executive Vice Presidents Mark Schuessler and Gian Bruno, Senior Vice President Kenny Patricia and Associate Vice President Blake Hammerstein, who partnered with local market experts Francois DeJohn and Caitlin Hensel, partners at Hayes Commercial Group, in marketing the portfolio and facilitating the deal on behalf of all parties.

CBRE Executive Vice Presidents Brad Zampa and Mike Walker provided debt and structured finance advisory.

Source: GlobeSt/ALM