Life sciences landlord Alexandria expands presence in Stanford research park

The $832M package includes two properties in the park.

San Francisco /
Dec.December 06, 2021 02:23 PM
Life sciences landlord Alexandria expands presence in Stanford research park
Joel Marcus and 3440 Hillview Ave, Palo Alto (Cushman Wakefield, Loopnet)

Life sciences landlord Alexandria Real Estate Equities is buying a Bay Area portfolio that includes two more properties within Stanford University’s Research Park.

The Pasadena firm is paying $832 million for 3301-3307, 3420 and 3440 Hillview Avenue in Palo Alto, 1178 El Camino Real in San Bruno and 888 Bransten Road in San Carlos, according to paperwork filed with the Securities and Exchange Commission. Alexandria plans to demolish the sites, with the exception of 3301-3307 Hillview Avenue, once the leases expire. It’s seeking to redevelop the assets into Class A properties.

Alexandria has made a series of purchases within the Stanford park, including a $115 million deal for a 100,00-square-foot office building at 3180 Porter Drive. In the new package, 3301-3307 and 3440 Hillview Avenue are within it. The 3301-3307 Hillview Avenue parcel is a 292,000-square-foot complex that is leased to software firm TIBCO. Morgan Stanley’s Prime Property Fund bought the asset in 2015 and agreed to a sale-leaseback deal with TIBCO. Alexandria, which expects to close on the property in the first quarter of next year, is paying $446 million for the complex.

The 3440 Hillview Avenue parcel, along with 3420 Hillview Avenue, changed hands in a $203.8 million deal. Alexandria plans to redevelop it into a two-building complex that spans 185,228 square feet. The firm also owns the two office properties next door at 3450 and 3460 Hillview. Alexandria bought the assets, which sit on a 7.4-acre lot, for $40.5 million last year. The firm closed on 3420 and 3440 Hillview Avenue on Oct. 5.

The 888 Bransten Road property is the planned site of a life sciences complex. The previous owner of the site, Black Mountain Properties, had filed proposals to convert the industrial property on the parcel, according to a previous report from The Registry.

Alexandria, which closed on the acquisition on November 4, paid $55 million for the asset. The firm, which plans to build a 210,830-square-property there, also owns a life sciences campus next door called Meridian 25. That complex, which spans 530,000 square feet, consists of a pair of six-story office buildings.

The San Bruno property is a 202,062-square-foot retail complex that was the site of a Sears store. Alexandria paid $128 million for it and plans to redevelop it into a 620,000-square-foot complex.

Alexandria is also in contract to sell its stake in Menlo Gateway, an office complex leased to Facebook. The firm didn’t respond to a request for comment.

UPDATE: This story has been updated to include the price of the 3301-3307 Hillview Avenue parcel.





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