PALO ALTO — A veteran authentic estate firm’s property buying spree in Palo Alto has now topped $1 billion with the company’s hottest buy of a alternative workplace campus in the South Bay tech hub, general public paperwork clearly show.
Alexandria Actual Estate, acting as a result of an affiliate, has acquired a four-making workplace advanced on Hillview Avenue in Palo Alto, files filed on Jan. 6 with the Santa Clara County Recorder’s Workplace clearly show.
The affiliate, ARE San Francisco No. 97, paid out $446 million for the offices and a ground lease for the land beneath the quartet of properties, which have addresses of 3301 through 3307 Hillview Ave., in accordance to the county residence files.
The four structures alongside one another overall approximately 292,000 square toes, in accordance to a brochure circulated by CBRE, a commercial genuine estate company that is been advertising and marketing the property.
Pasadena-dependent Alexandria Actual Estate acquired the properties, which are positioned in the prestigious Stanford Exploration Park spot, by means of an all-funds offer.
As is customary with property transactions in the research park, Stanford University retained the possession of the land beneath the four structures and Alexandria Actual Estate bought a ground lease for the tech campus.
The county documents indicated that Alexandria paid $267.6 million for the buildings and $178.4 million for the ground lease, bringing the full benefit of the offer to $446 million.
With the most new transaction, including the price of the ground lease, Alexandria has put in at the very least $1.37 billion paying for homes in Palo Alto about a four-year time period that started off in January 2018.
Palo Alto is one particular of the strongest workplace markets in the Bay Spot, principally due to the fact the city is a important tech hub and has lower vacancy premiums, according to residence industry experts.
The office elaborate that Alexandria has bought, on the other hand, is not occupied, despite the fact that it is leased, according to the CBRE brochure. The whole advanced is accessible for sublease, CBRE mentioned in the brochure. The existing lease extends until eventually March 2027, CBRE stated.
Pasadena-centered Alexandria is eyeing a revamp of the four office environment buildings to just take edge of the present surge in leasing by daily life sciences, medical machine and biotech businesses, according to a Jan. 4 filing by the corporation with the Securities and Exchange Commission.
“We be expecting to redevelop these spaces into place of work and laboratory place,” Alexandria stated in the SEC paperwork.