Pasadena-based life sciences landlord Alexandria Real Estate Equities is buying two more properties within Stanford University’s Research Park as part of a recent series of deals in the area that total $832 million.
The Pasadena firm has struck deals for five properties from various sellers recently, including package that includes 3301-3307 and 3440 Hillview Avenue in Palo Alto, part of the Stanford’s famous research park. The other properties are 3420 HIllview Avenue, also 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 research park at Stanford, including a $115 million deal last year for a 100,00-square-foot office building at 3180 Porter Drive.
The 3301-3307 Hillview Avenue parcel in the latest string of deals 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 them 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 the propery and is planning its redevelopment.
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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