Alexandria Real Estate Equities, Inc. Closes Strategic Value-Harvesting Disposition of 1165 Eastlake Avenue East in the Lake Union Submarket of Seattle
Alexandria Real Estate Equities (NYSE: ARE) has completed the sale of 1165 Eastlake Avenue East in Seattle to Fred Hutch Cancer Center for $150.0 million at a 4.9% capitalization rate. The 100,086 RSF Class A+ life science facility was developed by Alexandria and delivered in 2021. As part of the transaction, Alexandria entered a strategic joint venture partnership with Fred Hutch for 1201 and 1208 Eastlake Avenue East, maintaining a 30% ownership interest in both properties.
Fred Hutch executed early renewals at both properties, including a 15-year lease extension at 1201 Eastlake. The sale proceeds will be reinvested into Alexandria's development pipeline, which is expected to deliver $480 million in incremental annual net operating income by Q1 2028 from 5.3 million RSF of Class A/A+ properties under construction.
Alexandria Real Estate Equities (NYSE: ARE) ha completato la vendita di 1165 Eastlake Avenue East a Seattle al Fred Hutch Cancer Center per 150,0 milioni di dollari con un tasso di capitalizzazione del 4,9%. La struttura di scienze della vita di Classe A+ di 100.086 RSF è stata sviluppata da Alexandria ed è stata consegnata nel 2021. Come parte della transazione, Alexandria ha avviato una partnership strategica di joint venture con Fred Hutch per 1201 e 1208 Eastlake Avenue East, mantenendo un interesse di proprietà del 30% in entrambi gli immobili.
Fred Hutch ha eseguito rinnovamenti anticipati in entrambi gli immobili, inclusa una estensione di locazione di 15 anni per 1201 Eastlake. I proventi della vendita verranno reinvestiti nel pipeline di sviluppo di Alexandria, che si prevede genererà 480 milioni di dollari in reddito operativo netto annuale incrementale entro il primo trimestre del 2028 da 5,3 milioni di RSF di proprietà di Classe A/A+ in corso di costruzione.
Alexandria Real Estate Equities (NYSE: ARE) ha completado la venta de 1165 Eastlake Avenue East en Seattle al Fred Hutch Cancer Center por 150,0 millones de dólares con una tasa de capitalización del 4,9%. La instalación de ciencias de la vida de Clase A+ de 100,086 RSF fue desarrollada por Alexandria y entregada en 2021. Como parte de la transacción, Alexandria formó una asociación estratégica de joint venture con Fred Hutch para 1201 y 1208 Eastlake Avenue East, manteniendo un 30% de interés de propiedad en ambas propiedades.
Fred Hutch ejecutó renovaciones anticipadas en ambas propiedades, incluida una extensión de arrendamiento de 15 años para 1201 Eastlake. Los ingresos de la venta se reinvertirán en la cartera de desarrollo de Alexandria, que se espera genere 480 millones de dólares en ingresos operativos netos anuales incrementales para el primer trimestre de 2028 de 5,3 millones de RSF de propiedades de Clase A/A+ en construcción.
알렉산드리아 리얼 에스테이트 이쿼티스 (NYSE: ARE)는 시애틀에 위치한 1165 Eastlake Avenue East를 프레드 허치 암 센터에 1억 5천만 달러에 판매했으며, 4.9%의 자본화율로 거래되었습니다. 이 100,086 RSF 클래스 A+ 생명 과학 시설은 알렉산드리아에서 개발하였으며 2021년에 인도되었습니다. 거래의 일환으로, 알렉산드리아는 1201 및 1208 Eastlake Avenue East에 대해 프레드 허치와 전략적 조인트 벤처 파트너십을 체결하고 두 부동산에 대해 30%의 소유 지분을 유지하게 되었습니다.
프레드 허치는 두 부동산 모두에서 조기 갱신을 실행했으며, 1201 Eastlake에 대해 15년 임대 연장을 포함하고 있습니다. 판매 수익은 알렉산드리아의 개발 파이프라인에 재투자될 예정이며, 2028년 1분기까지 4억 8천만 달러의 증가된 연간 순 운영 소득을 생성할 것으로 예상되는 5.3백만 RSF의 클래스 A/A+ 부동산이 건설 중입니다.
Alexandria Real Estate Equities (NYSE: ARE) a finalisé la vente de 1165 Eastlake Avenue East à Seattle au Fred Hutch Cancer Center pour 150,0 millions de dollars avec un taux de capitalisation de 4,9%. L'établissement de sciences de la vie de Classe A+ de 100.086 RSF a été développé par Alexandria et livré en 2021. Dans le cadre de la transaction, Alexandria a établi un partenariat stratégique de coentreprise avec Fred Hutch pour 1201 et 1208 Eastlake Avenue East, en maintenant un intérêt de propriété de 30% dans les deux propriétés.
Fred Hutch a procédé à des renouvellements anticipés sur les deux propriétés, y compris une extension de bail de 15 ans pour 1201 Eastlake. Les produits de la vente seront réinvestis dans le pipeline de développement d'Alexandria, qui devrait générer 480 millions de dollars de revenus nets d'exploitation annuels supplémentaires d'ici le premier trimestre 2028 à partir de 5,3 millions de RSF de propriétés de Classe A/A+ en construction.
Die Alexandria Real Estate Equities (NYSE: ARE) hat den Verkauf von 1165 Eastlake Avenue East in Seattle an das Fred Hutch Cancer Center für 150,0 Millionen Dollar zu einem Kapitalisierungszins von 4,9% abgeschlossen. Die 100.086 RSF große Klasse A+ Lebenswissenschaftseinrichtung wurde von Alexandria entwickelt und im Jahr 2021 fertiggestellt. Im Rahmen der Transaktion trat Alexandria eine strategische Partnerschaft in Form einer Joint Venture mit Fred Hutch für 1201 und 1208 Eastlake Avenue East ein und behielt ein 30%iges Eigentumsinteresse an beiden Immobilien.
Fred Hutch führte frühzeitige Verlängerungen für beide Immobilien durch, darunter eine 15-jährige Mietverlängerung für 1201 Eastlake. Die Verkaufserlöse werden in die Entwicklungsagenda von Alexandria reinvestiert, die bis zum ersten Quartal 2028 voraussichtlich 480 Millionen Dollar an zusätzlichem jährlichem Nettobetriebsergebnis aus 5,3 Millionen RSF von im Bau befindlichen Klasse A/A+ Immobilien generieren wird.
- Sale of 1165 Eastlake Avenue East for $150.0 million at a strong 4.9% capitalization rate
- Strategic joint venture partnership with Fred Hutch for 1201 and 1208 Eastlake Avenue East
- 15-year lease extension at 1201 Eastlake with Fred Hutch
- Reinvestment of sale proceeds into development pipeline
- Expected $480 million incremental annual net operating income from development pipeline by Q1 2028
- None.
The sale of 1165 Eastlake Avenue East represents a strategic value-harvesting move by Alexandria Real Estate Equities. The
The formation of a joint venture with Fred Hutch for 1201 and 1208 Eastlake Avenue East, coupled with long-term lease renewals, strengthens Alexandria's position in the Seattle life science market. This move ensures stable, long-term cash flows and aligns interests with a key tenant. The
The
The joint venture restructuring and lease renewals with Fred Hutch demonstrate Alexandria's ability to maintain strong tenant relationships and secure long-term cash flows. This transaction showcases Alexandria's effective capital recycling strategy, potentially improving overall portfolio yield and quality. Investors should view this as a positive sign of the company's ability to execute value-add transactions in a competitive market.
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
"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
"Alexandria has been at the forefront of cultivating a world-class life science cluster in
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
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
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.
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