Praelium Sets Local Record With $235-Million Portfolio Acquisition

A massive, 17-building portfolio in Goleta, Calif., has changed hands for $235 million, marking one of the largest property transactions ever recorded in the region. Irvine, Calif.-based Praelium Commercial Real Estate purchased the collection of office, industrial, and research and development (R&D) assets from Majestic Asset Management. This high-profile deal highlights the enduring value of industrial space in Santa Barbara County, particularly as investors continue to prioritize high-quality R&D assets in the area.

The transaction, which served as a recapitalization sale for Majestic, involved Blackbird Investment Group and H.I.G. Capital with an affiliate of Starwood Property Trust providing a $153.5 million acquisition loan. The deal was orchestrated by a brokerage team from Colliers, including Sean Fulp and Michael Kendall, alongside Francois DeJohn and Caitlin Hensel of Hayes Commercial Group. Debt arrangements were handled by CBRE’s Brad Zampa and Mike Walker.

Dubbed “Tech Park @ Goleta,” the five-campus portfolio was assembled by its previous ownership through various acquisitions in the late 2010s and early 2020s. The properties are bounded by Hollister Avenue, Bollay Drive, Castilian Drive, Cremona Drive, and Ward Drive. They consist of one- and two-story buildings averaging 41,000 square feet. Though the structures have an average age of more than 26 years — with debut dates ranging from 1959 to 1996 — they underwent significant upgrades under Majestic’s ownership, including branding and new tenant facilities.

The portfolio’s tenant roster features major aerospace and tech players, such as Lockheed Martin, IT reseller Curvature and satellite firm Umbra Space. The latter two signed lease agreements just last year.

“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. “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.”

The region’s proximity to Vandenberg Space Force Base and its established presence of firms like Raytheon and Northrop Grumman make it a premier destination for companies seeking an alternative to the congestion of Los Angeles County. This mix of durable market fundamentals and a steady growth trajectory ensures that the Goleta market remains a top priority for institutional ownership.