Alexandria Real Estate Equities is in talks to sell parts of three life science buildings in Mission Bay, including the planned site of a 170,000-square-foot mixed-use project in one of the area’s last remaining buildable parcels.
The Pasadena-based firm is selling a 75 percent stake in 455 Mission Bay Boulevard South and 1700 Owens Street and a 20 percent share of 1450 Owens Street, according to paperwork filed with the Securities and Exchange Commission. The price for the transactions comes to a total of $399.25 million.
The property on Mission Bay Boulevard was previously leased to Bayer, which used the property for its Innovation Hub and CoLaborator incubator. The firm said it was shutting down its operations at the site earlier this year, saying it preferred to focus on Berkeley and Boston. Bayer’s lease at the property expired in October, according to a previous report from the San Francisco Business Times.
The 1700 Owens Street property is a 156,000-square-foot building near UC San Francisco. It contains offices and laboratories and was completed with a total construction cost of $24 million. The purchase price for the two properties, excluding the cost of the stake in 1450 Owens Street, comes to $1,390 per square foot.
Alexandria got approval to build at the 1450 Owens Street site last year. Its plans call for 133,000 square feet of life science research space, 49,999 square feet of offices and 2,600 square feet of retail on the ground floor. The project got the go-ahead from the San Francisco Planning Commission after a number of amendments, according to a previous report from local news outlet The Registry.
Alexandria recently bought a portion of a life sciences property in Millbrae.
The buyer for the package is unknown. Alexandria expects the transactions to close in mid-December and is projecting a rate of return of 11.2 percent. The firm didn’t respond to a request for comment.