PASADENA, Calif., Sept. 12, 2024 /PRNewswire/ -- Alexandria Real
Estate Equities, Inc. (NYSE: ARE), the first, preeminent,
longest-tenured and pioneering owner, operator and developer of
collaborative mega campuses in AAA life science innovation
cluster locations, today announced the completion of the sale,
through an affiliate, of 1165 Eastlake Avenue East in its Lake
Union submarket of Seattle to
longstanding tenant Fred Hutch Cancer Center (Fred Hutch). The fully leased 100,086 RSF
single-tenant Class A+ life science facility, which was developed
by Alexandria and delivered in
2021, sold for $150.0 million at a
strong capitalization rate of 4.9% (based upon cash net operating
income for 2Q24 annualized).
As part of this transaction, Alexandria, through an affiliate, entered into
a strategic joint venture partnership with Fred Hutch with respect to each of 1201 and 1208
Eastlake Avenue East, aggregating 206,031 RSF, through a transfer
of partial interests from the prior joint venture partner to
Fred Hutch. Alexandria's ownership interest in each of
1201 and 1208 Eastlake remains unchanged at 30%. Affirming
Fred Hutch's commitment to South
Lake Union, it also executed early renewals at both
properties, including a 15-year lease extension at 1201 Eastlake,
where it occupies the entire building. These two life science
facilities support the preeminent cancer center in its critical
efforts to translate cancer and infectious disease discoveries into
treatments and cures that improve and save lives.
"We know that every day matters to those facing life-threatening
illnesses," said Thomas J. Lynch
Jr., MD, president and director of Fred Hutch. "This opportunity allows us to
swiftly advance our research and expand our South Lake Union campus
in the heart of Seattle's life
science and biotech community. We appreciated the collaborative
relationship with Alexandria as we
explored and finalized this important agreement that will support
our mission to prevent, treat and cure cancer and infectious
disease."
"Alexandria has been at the
forefront of cultivating a world-class life science cluster in
Seattle since entering the region
in 1996 through our acquisition and leaseback of the original
Fred Hutch campus, which marked the
beginning of our longstanding strategic relationship with
Fred Hutch," said Hart Cole,
executive vice president – capital markets/strategic operations and
co-regional market director – Seattle of Alexandria. "Fred
Hutch is an important innovation engine in the Seattle life science market, and we are
pleased to enable their growth and deepen our relationship as they
expand their South Lake Union campus within the Alexandria
Center® for Life Science – Eastlake mega campus
ecosystem."
Proceeds from the strategic disposition of 1165 Eastlake will be
reinvested into Alexandria's
highly leased development and redevelopment pipeline, which
consists of research and development centers for top life science
companies, including Bristol Myers Squibb and Novo Nordisk. As of
June 30, 2024, 5.3 million RSF of
Class A/A+ properties undergoing construction and one committed
near-term project are expected to deliver incremental annual net
operating income aggregating $480
million by 1Q28.
About Alexandria Real Estate Equities, Inc.
Alexandria
Real Estate Equities, Inc. (NYSE: ARE), an S&P
500® company, is a best-in-class, mission-driven
life science REIT making a positive and lasting impact on the
world. As the pioneer of the life science real estate niche with
our founding in 1994, Alexandria
is the preeminent and longest-tenured owner, operator and developer
of collaborative mega campuses in AAA life science innovation
cluster locations, including Greater
Boston, the San Francisco Bay
Area, San Diego,
Seattle, Maryland, Research Triangle and New York City. As of June 30, 2024, Alexandria has a total market capitalization
of $32.5 billion and an asset base in
North America that includes 42.1
million RSF of operating properties and 5.3 million RSF of Class
A/A+ properties undergoing construction and one committed near-term
project expected to commence construction in the next two years.
Alexandria has a longstanding and
proven track record of developing Class A/A+ properties clustered
in mega campuses that provide our innovative tenants with highly
dynamic and collaborative environments that enhance their ability
to successfully recruit and retain world-class talent and inspire
productivity, efficiency, creativity and success. Alexandria also provides strategic capital to
transformative life science companies through our venture capital
platform. We believe our unique business model and diligent
underwriting ensure a high-quality and diverse tenant base that
results in higher occupancy levels, longer lease terms, higher
rental income, higher returns and greater long-term asset value.
For more information on Alexandria, please visit www.are.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements include, without limitation,
statements regarding the effectiveness of Alexandria's strategic value harvesting and
asset recycling program, the use of proceeds, and Alexandria's ability to monetize its
investments and fund future growth opportunities. These
forward-looking statements are based on Alexandria's present intent, beliefs or
expectations, but forward-looking statements are not guaranteed to
occur and may not occur. Actual results may differ materially from
those contained in or implied by Alexandria's forward-looking statements as a
result of a variety of factors, including, without limitation, the
risks and uncertainties detailed in its filings with the Securities
and Exchange Commission. All forward-looking statements are made as
of the date of this press release, and Alexandria assumes no obligation to update
this information. For more discussion relating to risks and
uncertainties that could cause actual results to differ materially
from those anticipated in Alexandria's forward-looking statements, and
risks and uncertainties to Alexandria's business in general, please refer
to Alexandria's filings with the
Securities and Exchange Commission, including its most recent
annual report on Form 10-K and any subsequently filed quarterly
reports on Form 10-Q.
CONTACT: Joel S.
Marcus, Executive Chairman & Founder, (626)
578-9693, jmarcus@are.com
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SOURCE Alexandria Real Estate Equities, Inc.