Alexandria Real Estate Nabs Two Palo Alto Office Buildings for $292MM

By Meghan Hall

It has been a busy year for Pasadena, Calif.-based Alexandria Real Estate in the Bay Area, who has both acquired and proposed millions of square feet of development. However, the year isn’t over yet: the life sciences developer, through an entity titled ARE San Francisco No. 80, has purchased two buildings along Fabian Way for $292 million in cash in a deal that closed December 10th. The properties were sold by SSL Land LLC, affiliated with Space Systems Loral, who has occupied the buildings for decades.

The Mercury News first reported the transaction.

Located at 3825 and 3875 Fabian Way, property records show that the buildings were constructed in 1956and 1967, respectively. Together, the two lots total more than 800,000 square feet, or nearly two dozen acres worth of land. 

SSL, now known as Maxar, according to its website, is a spacecraft and communications systems firm specializing in integrated space technologies. The company manufactures geostationary satellites, robotics and remote operations software, and has more geostationary communications satellites in orbit than any other manufacturer, with more than 270 satellites launched. It is unclear as to whether or not SSL will remain at its long-time headquarters or move to a new location now that the sale of the properties has been completed. Currently, its Palo Alto offices are still listed as Fabian Way on the company’s website.

In January of 2018, Alexandria also purchased Embarcadero Place for $136 million in Palo Alto, followed by another $100 million acquisition of 3170 Porter Drive in January of 2019. Alexandria also acquired 3160 Porter Drive for $97 million in August of this year. Both buildings are also based in Palo Alto, and the seller was Stanford University. Part of the Stanford Research Park, the university maintains ownership of the land beneath both buildings.  

West Coast Commercial Real Estate News