September 1, 2026

DALLAS & NEW YORK & LONDON & TOKYO–(BUSINESS WIRE)–Lone Star Funds (“Lone Star”) today announced that an affiliate of Lone Star Real Estate Fund VII, L.P. has successfully completed the acquisition of the largest institutional aggregation of Class A, predominantly single-story R&D real estate assets in the Silicon Valley.

The portfolio totals ~2.2Mn square feet across six campuses, 50 buildings and 140 acres in Silicon Valley’s Golden Triangle, conveniently providing access to the broader San Francisco Bay Area and its robust business community. The assets contain purpose-built R&D capabilities required by AI-, advanced manufacturing-, medical device- and semiconductor-focused clients, among others. This specialized infrastructure includes advanced modifications related to power, HVAC, labs, clean rooms and loading facilities, tailored to the unique needs of tenants.

Lone Star plans to invest in the current capabilities across the portfolio, enhancing its offering through value-additive upgrades, while also actively managing the assets to continue to provide high-quality services to new and prospective tenants. The scale of the portfolio also provides significant diversification and growth potential, allowing for greater flexibility to meet the needs of a rapidly evolving client base. TMG Partners and Grove are joint venture partners in the investment and will operate the portfolio.

“California is the largest manufacturing state in the U.S., employing over 1.2 million workers and contributing over $390 billion to GDP. We see significant opportunity in this portfolio given the strong tailwinds across the business landscape right now in the Silicon Valley,” said Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star. “We have a high level of conviction in the resurgence of the San Francisco Bay Area, and the purpose-built nature and mix of capabilities in this portfolio will be immediately attractive to tenants who need advanced, turnkey facilities.”

This acquisition marks the second substantive investment in the broader Bay Area for Lone Star over the past 12 months, following the acquisition of the mortgage secured by 600 California Street in San Francisco in January 2026.