Orchard Partners Taps JLL To Market Massive Advanced Manufacturing Hub In Brisbane
According to Bisnow, developer Orchard Partners has enlisted JLL to secure tenants for the Quarry Innovation Center, a sprawling 892,000-square-foot industrial project on the San Francisco Peninsula. The development occupies a 61.4-acre portion of a historic rock quarry and features a high-capacity substation designed to support energy-intensive production. The firm scaled back the footprint of the single two-story building to preserve surrounding open space.
Context from Industry Pulse
The Brisbane project highlights a shift toward specialized, power-heavy assets as developers move away from generic warehousing. This focus on infrastructure mirrors recent interest in semiconductor manufacturing expansions in North Texas and high-tech innovation hubs in Washington D.C. While some regions are seeing office-to-residential conversions to address housing shortages, Orchard Partners is betting on the scarcity of modern industrial space near San Francisco. Investors should watch if the 49-megawatt power capacity attracts the same deep-pocketed tech tenants currently driving demand for data centers and specialized lab space across the Bay Area.
Orchard Partners has selected JLL to market the Quarry Innovation Center, a planned 892,000-square-foot advanced manufacturing campus in Brisbane. According to Bisnow, the project is situated on a 61.4-acre site that formerly housed a rock quarry operating since 1895. The development plans were reduced by 33 percent from the original proposal, focusing on a single two-story industrial building while dedicating 82 acres to permanent open space. The facility is designed to support power-intensive tenants with an on-site substation providing 49 megawatts of power. JLL data indicates this Class-A industrial space will be a modern outlier on the San Francisco Peninsula, where 77 percent of existing inventory dates back to before 1980.
In the residential sector, Interstate Equities Corp. purchased The Dylan, a 232-unit apartment complex in Hercules, for $83.5 million. Bisnow reports the seller was Hercules Development Partners. Additionally, Carmel Partners acquired the 268-unit Silver apartment complex in San Jose for $122 million from Essex Property Trust. This transaction marks the fourth Bay Area acquisition for the firm’s ninth fund. In another San Jose multifamily deal, Oberndorf Real Estate Management and The Bascom Group teamed up to buy the 117-unit Museum Park Apartments for $53.1 million, reflecting a slight decrease from its 2020 sale price of $57 million.
Office and research activity remains steady with several notable acquisitions. The Davis Cos. purchased a 65,000-square-foot building in San Jose for $17 million, with plans to renovate the facility once the current lease with Maxeon Solar Technologies ends in 2027. In Walnut Creek, FH One Investments acquired an office building at 500 Ygnacio Valley Road for $22.5 million via a deed-in-lieu-of-foreclosure. This price represented a 40 percent discount compared to the previous purchase price a decade ago. KKR and TMG Partners also closed on Skyport Plaza in San Jose, paying $75.5 million for the office and retail site.
Retail and healthcare infrastructure rounded out recent regional activity. Sterling Organization added two Safeway-anchored centers in Burlingame and Pleasanton to its portfolio, both of which are nearly fully leased. In San Jose, Santa Clara County completed a new 207,000-square-foot Behavioral Health Pavilion at the Valley Medical Center. Finally, DM Development secured over $61 million in financing to begin construction on a 152-unit residential project in San Francisco’s Mission District, scheduled for completion in 2028.
The Industry Pulse Bottom Line
By prioritizing extreme power capacity and sustainability, Orchard Partners is targeting a high-barrier market where aging inventory cannot meet modern production needs. This site serves as a template for repurposing industrial land into high-value manufacturing hubs.