Alexandria Real Estate Equities’ Bay Area selling spree extended to a life sciences building in Palo Alto.
The Pasadena-based real estate investment trust sold the 60,000-square-foot building to a Strada Investment Group affiliate for $29 million, the Silicon Valley Business Journal reported. The price amounts to $483 per square foot.
The building, at 3350 West Bayshore Road, is 73 percent leased with tenants including liquid biopsy company Exai Bio and speciality chemical manufacturer Clariant Corporation.
Alexandria has developed more than two dozen large office complexes in life science hubs like Boston, the San Francisco Bay Area, San Diego, Seattle, New York City, Austin and North Carolina’s Research Triangle. That business makes up 77 percent of the firm’s annual rental revenue.
The life sciences real estate market faces lower rental demand and paused developments, and Alexandria has been offloading or changing its strategy at some of those properties in response. It sold a fully leased life sciences building, a medical building and a 45-acre site in North Carolina, and it plans to convert some of its San Francisco lab spaces to offices.
Earlier this week, Alexandria closed a deal with the University of California, San Francisco to sell two adjacent buildings in San Francisco’s Mission Bay.
Drug manufacturer FibroGen had its headquarters in one building before exiting its lease four years early last year. UCSF occupies the other. The university plans to expand its dentistry, medicine, nursing, pharmacy and physical therapy programs in the former Alexandria-owned buildings.
News surfaced this week that Alexandria is preparing to trim its San Francisco holdings even further with the sale of the long-embattled San Francisco Tennis Club site.
Alexandria completed $508 million worth of property sales through October, the outlet said. The REIT has spent the fourth quarter trying to sell $1 billion worth of property, with the goal of completing the disposition of non-core properties by 2027. — Chris Malone Méndez
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