By Meghan Hall
Pasadena, Calif.-based Alexandria Real Estate is snapping up properties within the coveted Stanford Research Park at a rapid pace. In a transaction that closed just yesterday, the life science developer paid $71.4 million for 2475 Hanover Street in Palo Alto, adding to its already extensive collection of assets in the neighborhood.
The Mercury News was the first to report on the transaction.
Built in 2003, the Class A office building totals about 83,980 square feet, according to a listing from CommercialCafe. The property sits on 4.7 acres and has 184 parking spaces. Numerous companies, such as ARGO AI, Mercari Inc, and Hewlett-Packard occupy the buildings nearby.
In recent years, Alexandria has purchased quite a number of buildings within the Stanford Research Park, which is a well-known hub of innovation and entrepreneurship. Most recently, Alexandria acquired two buildings at 3450 and 3460 Hillview Road for a combined $40.5 million. Together, the buildings total 77,000 square feet.
Alexandria has also bought 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. According to the Mercury News, Alexandria has invested $926 million in real estate within Stanford Research Park alone over the course of the past several years.
In recent years, Stanford has sought to significantly strengthen the presence of life sciences within the research park.
“The University’s commitment to life science research and development is strengthening under the leadership of President Marc Tessier-Lavigne,” states the campus’ website. “The success of the Research Park is inextricably linked to the University, as the academy and the Research Park enterprise work together to sustain an integrated academic-to-industry life science ecosystem.”
As a result, a specific portion of the Research Park has been designated as a “Life Science District.” The district sits at the center of the research park and is currently home to Varian Medical Systems, Jazz Pharmaceuticals, DuPont Biosciences, Guardant Health, Kodiak Sciences, and the Canary Foundation, among others. The local VA Hospital and Stanford School of Medicine are also nearby.