Land buyer for the Palo Alto technology complex
PALO ALTO – The real estate buying spree of a seasoned real estate company in Palo Alto has now surpassed $ 1 billion with the company’s latest purchase of a prime office campus in South Bay’s tech hub, according to reports. public documents.
Alexandria Real Estate, acting through an affiliate, purchased a four-building office complex on Hillview Avenue in Palo Alto, documents filed Jan. 6 with the Santa Clara County Recorder’s Office show.
The subsidiary, ARE San Francisco No. 97, paid $ 267.6 million for the buildings, which have addresses from 3301 to 3307 Hillview Ave., according to county property records.
The four buildings total approximately 292,000 square feet, according to a brochure released by CBRE, a commercial real estate company that markets the property.
Pasadena-based Alexandria Real Estate purchased the buildings, which are located in the prestigious Stanford Research Park area, through an all-cash transaction.
As usual with real estate transactions in the Research Park, Stanford University retained ownership of the land under the four buildings and Alexandria Real Estate purchased a ground lease for the tech campus.
County documents said Alexandria paid $ 178.4 million for the ground lease, bringing the total value of the deal to $ 446 million.
With the most recent transaction, excluding the ground lease value, Alexandria spent at least $ 1.19 billion to buy properties in Palo Alto over a four-year period starting in January 2018.
Including the value of the ground lease, the value of real estate purchases totals at least $ 1.37 billion.
Palo Alto is one of the Bay Area’s strongest office markets, primarily because the city is a major tech hub and has low vacancy rates, real estate experts say.
The office complex that Alexandria bought is not occupied, however, although it is leased, according to the CBRE brochure. The entire complex is available to sublet, CBRE said in the brochure. The existing lease runs until March 2027, CBRE said.