By Jon Peterson
Pasadena, Calif.-based Alexandria Real Estate Equities has paid $73.2 million, or just over $887 per square foot, to acquire the two-building 82,462 square foot Shoreway Science Center in San Carlos, according to the REIT’s 2018 fourth quarter supplemental report. The asset is located at 75 & 125 Shoreway Road.
The seller of the property is Redwood City-based Premia Capital, which had owned the asset since November of 2015 when it paid $38.5 million for it. This real estate firm would not comment on the current sales price of the property to Alexandria.
Premia had placed the property up for sale last September with JLL as the listing agent on the sale. Those involved in the sale included Will Connors, Dan Renz and Erik Doyle. JLL did not respond to calls seeking comment for this story.
The seller had called the property San Carlos Science Center when the asset was placed on the market. “We had made the necessary improvements to the property and had leased up all of the empty space. We felt now was a good time to sell the property to take advantage of the overall interest there is currently in life science assets in the Bay Area,” said Mike Halow, owner of Premia Capital.
Shoreline Science Center has no vacancies. The largest tenant in the property is Alkahest. It has two leases totaling 36,812 square feet. This space will be occupied through April of 2024. The other tenants in the property are Omniox, Apexigen, BioCardia and USHW of California. There will be an opportunity to add value once the existing leases come up for renewal. The current rents in the property are almost 30 percent below market with an average lease term of 4.7 years.
Alexandria stated in its supplemental quarterly report that the initial stabilized cash yield on the transaction will be 5.5 percent.