Land buyer for the Palo Alto technology complex
PALO ALTO – The real estate buying spree of a seasoned real estate company in Palo Alto has now surpassed $ 1 billion with the company’s latest purchase of a prime office campus in South Bay’s tech hub, according to reports. public documents.
Alexandria Real Estate, acting through an affiliate, purchased a four-building office complex on Hillview Avenue in Palo Alto, documents filed Jan. 6 with the Santa Clara County Recorder’s Office show.
The subsidiary, ARE San Francisco No. 97, paid $ 446 million for office space and a ground lease for the land under the quartet of buildings, which have addresses from 3301 to 3307 Hillview Ave., according to property records from the county.
The four buildings total approximately 292,000 square feet, according to a brochure released by CBRE, a commercial real estate company that markets the property.
Pasadena-based Alexandria Real Estate purchased the buildings, which are located in the prestigious Stanford Research Park area, through an all-cash transaction.
As usual with real estate transactions in the Research Park, Stanford University retained ownership of the land under the four buildings and Alexandria Real Estate purchased a ground lease for the tech campus.
County documents said Alexandria paid $ 267.6 million for the buildings and $ 178.4 million for the ground lease, bringing the total value of the transaction to $ 446 million.
With the most recent transaction, including the ground lease value, Alexandria spent at least $ 1.37 billion to buy properties in Palo Alto over a four-year period that began in January 2018.
Palo Alto is one of the Bay Area’s strongest office markets, primarily because the city is a major tech hub and has low vacancy rates, real estate experts say.
The office complex that Alexandria bought is not occupied, however, although it is leased, according to the CBRE brochure. The entire complex is available to sublet, CBRE said in the brochure. The existing lease runs until March 2027, CBRE said.
Pasadena-based Alexandria is considering an overhaul of the four office buildings to take advantage of the current increase in rentals by life science, medical device and biotech companies, according to a January 4 filing by the company with the Securities and Exchange Commission.
“We are planning to redevelop these spaces as offices and lab spaces,” Alexandria said in the SEC documents.