By Meghan Hall
As office sales volume begins to pick back up, Pasadena, Calif.-based Alexandria Real Estate Equities has snapped up a Stanford Research Park office building for $115.2 million. In a bid to expand its presence in the region, ARE San Francisco No. 85 purchased 3181 Porter from Stanford University. As is customary for transactions in Stanford Research Park, the university maintained possession of the land, and only sold the building itself in the sale. The price per square foot of the asset topped $1,152.
The Mercury News was the first to report the transaction.
3181 Porter was built by Stanford University and completed in 2019. According to public documents, the 100,000 square foot building was rented to Jazz Pharmaceuticals. The lease is expected to last 12 years with a base rent of $6.20 per square foot per month.
The property is not Alexandria’s first acquisition in the well-known business park. In September of 2019, Alexandria announced that it had acquired 3160 Porter Drive, a 92,000 rentable square foot office redevelopment for $26 million.
“For more than two decades, Alexandria has been helping to grow the greater Stanford innovation cluster by bringing together scientific innovation across a deep concentration of pioneering companies, world-renowned academic and medical research institutions, unmatched intellectual talent and ample venture capital,” said Alexandria’s Co-Chief Executive Officer Stephen Richardson at the time of the 3160 Porter acquisition. “We are proud of our proven track record in transforming markets with great scientific research into thriving life science clusters, and we are honored to continue our long-term strategic relationship with Stanford to create a world-class, thoughtfully programmed life science destination to invigorate Stanford Research Park and build upon Stanford’s rich history at the leading edge of scientific advances that improve patient lives.”
Alexandria also purchased 3170 Porter Drive for $100.25 million in January of 2019. Jazz Pharmaceuticals also leases that property and moved in around the date of Alexandria’s acquisition. Similar to its lease of 3181 Porter, Jazz Pharmaceuticals is expected to remain a tenant for twelve years from the commencement of the lease. Base rent also came in at $6.20 per square foot per month. The property is used for research and development, including for pharmaceutical and biotechnology uses that extend to laboratories, warehousing and ancillary office uses.
To date, Alexandria operates more than 300,000 square feet of office and laboratory space in Stanford Research Park alone, with more than 1.1 million square feet in its Stanford Innovation cluster.