PALO ALTO — A veteran authentic estate firm’s property buying spree in Palo Alto has now topped $1 billion with the company’s newest acquire of a selection place of work campus in the South Bay tech hub, community documents clearly show.
Alexandria Actual Estate, performing by means of an affiliate, has acquired a four-setting up office environment sophisticated on Hillview Avenue in Palo Alto, paperwork filed on Jan. 6 with the Santa Clara County Recorder’s Office environment display.
The affiliate, ARE San Francisco No. 97, paid $446 million for the workplaces and a floor lease for the land beneath the quartet of buildings, which have addresses of 3301 through 3307 Hillview Ave., according to the county property data files.
The 4 structures together whole roughly 292,000 sq. toes, in accordance to a brochure circulated by CBRE, a business genuine estate firm that’s been marketing the assets.
Pasadena-based mostly Alexandria Genuine Estate purchased the buildings, which are positioned in the prestigious Stanford Investigate Park spot, by an all-cash offer.
As is customary with residence transactions in the analysis park, Stanford University retained the ownership of the land beneath the 4 properties and Alexandria Genuine Estate purchased a ground lease for the tech campus.
The county paperwork indicated that Alexandria paid out $267.6 million for the structures and $178.4 million for the floor lease, bringing the total worth of the offer to $446 million.
With the most latest transaction, which includes the worth of the floor lease, Alexandria has spent at least $1.37 billion obtaining attributes in Palo Alto above a 4-year interval that commenced in January 2018.
Palo Alto is a person of the strongest business marketplaces in the Bay Space, mainly because the town is a main tech hub and has very low emptiness premiums, according to residence authorities.
The office sophisticated that Alexandria has bought, nonetheless, isn’t occupied, while it is leased, in accordance to the CBRE brochure. The full complicated is obtainable for sublease, CBRE explained in the brochure. The present lease extends until eventually March 2027, CBRE stated.
Pasadena-based mostly Alexandria is eyeing a revamp of the 4 business buildings to choose edge of the present-day surge in leasing by daily life sciences, healthcare machine and biotech businesses, in accordance to a Jan. 4 filing by the organization with the Securities and Trade Commission.
“We anticipate to redevelop these spaces into workplace and laboratory place,” Alexandria said in the SEC documents.