PASADENA, Calif., July 13, 2018 /PRNewswire/ -- Alexandria
Real Estate Equities, Inc. (NYSE: ARE), an urban office REIT
uniquely focused on collaborative life science and technology
campuses in AAA innovation cluster locations, today announced it
has acquired 219 East 42nd Street for $203
million on a fee simple basis, through a membership interest
in the purchasing entity 219/235 East LLC. As part of the
transaction, 219/235 East LLC leased back 219 East 42nd Street
on a triple net basis to Pfizer Inc., which announced earlier
this year plans to relocate its global office headquarters to
Manhattan's Hudson Yards
neighborhood in 2022. Ideally located in the heart of Manhattan's East Side Medical Corridor with
critical adjacency to New York
City's renowned academic and medical institutions, the
acquisition of this approximately 350,000 RSF, 10-story office
building represents significant and immediate net operating
income growth with a strong yield from an investment-grade tenant.
Upon expiration of the lease, this highly sought-after asset will
provide Alexandria with the
opportunity to increase cash flows through conversion and
redevelopment into office/laboratory space.
"Alexandria has been at the
vanguard of catalyzing the evolution and growth of the New York City life science cluster for more
than a decade," said Joel S. Marcus,
executive chairman and founder of Alexandria Real Estate Equities,
Inc. "In addition to developing New York
City's premier life science campus at the Alexandria
Center® for Life Science, we have brought together the
city's brightest minds from biopharma and academia to drive
biomedical innovation; helped recruit top talent to the cluster to
lead early-stage companies; bolstered scientific collaborations by
providing companies with access to our world-class life science
network; and been a leading provider of early-stage venture capital
investment to New York City's life
science companies."
Alexandria was a critical first
mover in the creation of the New York
City life science cluster through the development of its
world-class campus anchoring the city's East Side Medical Corridor.
Since its opening in 2010, the Alexandria Center for Life Science
has fostered collaboration and innovation for a diverse range of
high-quality entities from multinational pharmaceutical companies,
such as Pfizer Inc., Eli Lilly and Company and Roche, to early- and
growth-stage companies, including Intra-Cellular Therapies, Inc.,
Kallyope Inc. and MeiraGTx Holdings plc, as well as Lodo
Therapeutics Corporation and Petra Pharma Corporation, which were
both launched by Accelerator Life Science Partners, a leading life
science investment and management firm co-founded by Alexandria.
"The success of the Alexandria Center and the multidisciplinary
efforts of our team have been instrumental in the growth of
New York City's life science
cluster," said John H. Cunningham,
executive vice president and New York
City regional market director at Alexandria Real Estate
Equities, Inc. "We have worked diligently to attract entities from
all over the world to NYC and to provide these companies with
affordable, high-quality laboratory and office space; valuable
networking to leaders from across the life science community; and
sophisticated amenities to support the translation of their
scientific discoveries into treatments and cures for patients. Our
proposed transformation of 219 East 42nd Street into a life science
center signifies a groundbreaking extension of Alexandria's unparalleled world-class
franchise along Manhattan's East
Side Medical Corridor and an exciting expansion opportunity for our
campus community."
As of March 31, 2018, Alexandria's New
York City asset base comprised a 728,000 RSF, two-building
office/laboratory campus with a future development opportunity for
an additional 420,000 RSF tower on site. The campus is 100% leased
to innovative life science entities, with 70% of the region's
annual rental revenue coming from investment-grade tenants.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P
500® company, is an urban office REIT uniquely focused
on collaborative life science and technology campuses in AAA
innovation cluster locations, with a total market capitalization of
$17.9 billion and an asset base in
North America of 30.2 million SF
as of March 31, 2018. The asset base
in North America includes 20.8
million RSF of operating properties and 3.5 million RSF of
development and redevelopment of new Class A properties currently
undergoing construction and pre-construction activities with target
delivery dates ranging from 2018 through 2020. Additionally, the
asset base in North America
includes 5.9 million SF of intermediate-term and future development
projects, including 3.6 million SF of intermediate-term development
projects. Founded in 1994, Alexandria pioneered this niche and has since
established a significant market presence in key locations,
including Greater Boston,
San Francisco, New York City, San
Diego, Seattle,
Maryland and Research Triangle
Park. Alexandria has a
longstanding and proven track record of developing Class A
properties clustered in urban life science and technology campuses
that provide its 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 and technology companies through its
venture capital arm. 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 additional information, please visit www.are.com.
CONTACT: Sara
Kabakoff, Senior Manager – Corporate Communications,
Alexandria Real Estate Equities, Inc., (626) 788-5578
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SOURCE Alexandria Real Estate Equities, Inc.