By Jon Peterson
Pasadena-based Alexandria Real Estate Equites has paid $85 million for two land sites located at 825 and 835 Industrial Road in San Carlos, as stated by the public REIT in its 2017 second quarter earnings results. The land is fully entitled where a total of 530,000 square feet could be developed on the land in the future. The company has not indicated when it will be starting or finishing this project.
This development will have a total of two buildings and a parking structure. The land purchase along with land acquired at 960 Industrial Road in San Carlos for $64.9 million in June of 2017 will allow Alexandria to create a major new office development in the Peninsula submarket. The land parcels would be the home of a future one million square foot urban science and technology campus.
Alexandria is going through with a major expansion of its investment efforts in the Greater San Francisco Bay Area. Earlier this year, it bought an existing building that has a ground lease located at 1450 Page Mill Road within the Stanford Research Park. The purchase price of the property was $85.3 million.
The asset is a 77,000 square foot office building that has a 51-year ground lease. The building was recently completed and is 100 percent leased to Infosys Limited for the next 12 years. Alexandria expects to achieve initial stabilized yields of 7.3 percent on a leveraged basis and 5.8 on a cash basis, as stated by Alexandria in its second quarterly earnings report.
