By Meghan Hall
Alexandria’s appetite for real estate in the highly sought-after Stanford Research Park continues to grow. In a transaction that closed at the end of last week, the Pasadena, Calif.-based life sciences developer purchased two buildings at 3450 and 3460 Hillview Ave. for a combined $40.5 million. The seller of the lease-hold property was Invesco, which owned the buildings since 2012 when the company paid $50 million for them, according to public documents. The buildings are currently leased to SAP, a German multinational software corporation, according to The Mercury News, who was the first to report the transaction.
Together, the buildings total 77,000 square feet. 3450 Hillview is the largest of the two assets, with about 42,000 square feet. 3460 Hillview totals 35,000 square feet. As is typical for transactions within the park, Alexandria only acquired the buildings, and the land beneath them remains in possession of Stanford.
In recent years, Alexandria has purchased $850 million worth of assets in the Stanford Research Park. Recently, Alexandria purchased 3180 Porter Drive—leased to Jazz Pharmaceuticals—for $115.2 million. In December of 2019, Alexandria also acquired several buildings previously owned by SSL for $291 million.
Stanford Research Park is a popular location amongst investors, thanks to its array of powerhouse Fortune 500 companies such as HP Inc. and Ford Motor Company, and major innovators such as Hewlett Packard, Tesla and Argo.
According to its website, Stanford has been increasing its commitment to life science research and development as part of developing an integrated “academic-to-industry life science ecosystem.” Home to DuPont Biosciences, Varian Medical Systems and others, Stanford’s life science district is located at the heart of the park and provides strong fundamentals for investors like Alexandria. Within the district, Alexandria’s own life science incubator at 3160 Porter Drive is expected to open in the summer of 2021.