Office purchase brings Alexandria’s Palo Alto portfolio value to more than $1B

The firm plans to redevelop the Stanford Research Park properties into life sciences buildings

San Francisco /
Jan.January 10, 2022 09:34 AM
Purchase of offices brings Alexandria’s Palo Alto portfolio value to more than $1B (CBRE)

Is it a unicorn yet? The purchase of a four-building office complex has brought the value of a veteran real estate firm’s Palo Alto portfolio to more than $1 billion.

Pasadena-based Alexandria Real Estate bought the buildings at 3301 to 3307 Hillview Avenue for $446 million through an affiliate. The most recent transaction brings the company’s total spent on properties in Palo Alto since January 2018 to at least $1.37 billion, SiliconValley.com reported.

The buildings, which are located in the Stanford Research Park, total about 292,000 square feet. Alexandria bought a ground lease for the properties as Stanford University retains ownership of the land beneath the buildings in the South Bay tech campus.

Alexandria paid $267.6 million to acquire the properties and an additional $178.4 million for the ground lease.

The office complex is leased to software firm TIBCO through 2027, but currently unoccupied and available for sublease.

Alexandria, which specializes in life sciences properties, has preliminary plans to redevelop the buildings into office and lab space to take advantage of the current surge in leasing by biotech, life sciences and medical device companies.

The firm also bought the properties at 3420 and 3440 Hillview Avenue in the same office complex. 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.

A few months ago, Alexandria also paid $21 million to acquire part of a Millbrae site where the firm has proposed an approximately 578,000-square-foot life science project. The project calls for a four-building complex that would contain lab, office and amenity space.

[SV] — Victoria Pruitt





    Related Articles

    arrow_forward_ios
    6001 Bollinger Canyon Road and Chevron’s Michael Wirth (Google Maps, Getty)
    Is Bishop Ranch the right size for downsized Chevron footprint in East Bay?
    Is Bishop Ranch the right size for downsized Chevron footprint in East Bay?
    Stockdale Capital Partners’ Steven and Shawn Yari with 501 Geary St (Stockdale Capital, The Markers, iStock)
    Pebblebrook sells DTSF’s Marker Hotel
    Pebblebrook sells DTSF’s Marker Hotel
    Prologis' Hamid Moghadam, Cedar Fair's Richard A. Zimmerman and California’s Great America at 4701 Great America Pkwy. (Prologis, Cedar Fair, Oleg Alexandrov/CC BY-SA 4.0/via Wikimedia Commons)
    Prologis buys 112-acre theme park in Santa Clara
    Prologis buys 112-acre theme park in Santa Clara
    Mike Mordaunt and Joe Brady (LinkedIn)
    Cushman & Wakefield lures 10 brokers from Savills in Silicon Valley
    Cushman & Wakefield lures 10 brokers from Savills in Silicon Valley
    Chevron's Michael Wirth with 6001 Bollinger Canyon Rd (Zillow, Chevron)
    Chevron to sell 92-acre HQ campus in San Ramon
    Chevron to sell 92-acre HQ campus in San Ramon
    Urban Catalyst's Erik Hayden and Icon Echo Towers at 147 E. Santa Clara Street (Urban Catalyst, iStock, Illustration by Kevin Cifuentes for The Real Deal)
    Urban Catalyst eyes twin towers in Downtown San Jose
    Urban Catalyst eyes twin towers in Downtown San Jose
    North East Medical Services' president and CEO Dr. Eddie Chan in front of Building G of the Vietnam Town shopping center in San Jose (NEMS, LoopNet, iStock)
    Health clinic buys 45K sf building in San Jose’s Little Saigon
    Health clinic buys 45K sf building in San Jose’s Little Saigon
    Wells Fargo's Charles W. Scharf and 333 Market Street, San Francisco (Wells Fargo, Google Maps)
    Wells Fargo renews on 620K sf for San Francisco HQ
    Wells Fargo renews on 620K sf for San Francisco HQ
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...