By Jon Peterson
Pasadena, Calif.-based Alexandria Real Estate Equities has paid $136 million, or $819 per square foot, to acquire an office campus in the greater Stanford market located at 2100-2400 Geng Road, as stated by the real estate investment trust in its 2017 fourth quarter and year-end earnings report.
The acquisition was completed on January 25th, and the seller is Los Angeles-based Hudson Pacific Properties. Hudson Pacific announced the sale in a release earlier this month, which The Registry covered, and it was part of larger, $254.8 million disposition that included three Bay Area locations and one in Beverly Hills.
There is a total of four properties at the Geng Road campus, which covers 11 acres of land with the assets nearly 77 percent occupied. The properties total roughly 166,000 square feet of operating space and another 32,000 square feet of re-development space. The campus has a total of 14 in-place leases with a weighted-average remaining lease term of three years.
Alexandria is now evaluating options for the conversion of existing office space into office/laboratory space through redevelopment.
The public REIT has two other acquisitions that are either under contract or letter of intent, according to its earnings report. One of these is an investment in 1655 and 1715 Third Street in San Francisco. The deal is planned to close sometime next month.
The investment is for $31 million for a 10 percent interest in a joint venture with Uber and the Golden State Warriors that is expected to be formed in February. The venture is developing two office buildings totaling 580,000 square feet that are adjacent to the Warriors new arena, also known as the Chase Center. All of the office space is fully pre-leased to Uber. The space should be ready for Uber to occupy in 2019.
The other investment is a planned transaction of $18.9 million going into 1455 and 1515 Third Street in San Francisco. This is a second $18.9 million investment into the two office buildings for a 49 percent interest in the assets. The first installment was paid in the second quarter of last year. The final installment should be paid in the first half of this year.