SAN FRANCISCO, April 21, 2014 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), an approximately $9 billion total market capitalization real estate investment trust uniquely focused on clustering Class A assets in urban science and technology campuses located in the heart of centers of innovation, today announced that an affiliate acquired a 1.23 acre development site zoned for approximately 300,000 gross-square-feet at 500 Townsend Street in San Francisco, California. This AAA location at the intersection of Alexandria's Mission Bay science and technology campus and the South of Market ("SoMa") technology district provides Alexandria with a unique opportunity to strategically expand its Mission Bay cluster and capture strong demand for this submarket from prospective client tenants looking for a collaborative, 24/7, live/work/play environment, as well as the ability to successfully recruit and retain best-in-class talent.
The acquisition of the 500 Townsend Street site, one of the highest-quality substantial development parcels in SoMa, reinforces Alexandria's strong emphasis on capital allocation in the epicenter of the world's most desirable urban real estate markets. The site is ideally located at the corner of Townsend and Sixth Streets, placing it within close proximity to public transportation. The site is also adjacent to one of Interstate 280's key arrival points into San Francisco and is only blocks from Interstate 80 and the US 101 Freeway. Furthermore, with its highly strategic location at the intersection of Alexandria's Mission Bay science and technology campus and the SoMa technology district, the 500 Townsend site, and this key cluster expansion, mirrors the convergence of life science, technology, and healthcare occurring with the digital health revolution. As the collaboration of these disciplines drives groundbreaking innovations in the American healthcare system, Alexandria is poised to support the industry's growth in critical urban science and technology centers.
Alexandria's niche focus on state-of-the-art, highly collaborative urban science and technology campuses such as Alexandria Technology Square® in Cambridge, the Alexandria Center™ for Science and Technology at Mission Bay, and the Alexandria Center™ for Life Science in New York City – all Class A campuses in prime locations – has created substantial long-term net asset value. The Company's deep and broad entitlement, design, and development expertise and experience, as well as credible and respectful long-term relationships with key San Francisco governmental agencies, enabled Alexandria to develop its approximately one million-square-foot Mission Bay campus in the City of San Francisco that is now approximately 99.8% leased to high-quality client tenants. With the recent sale of its last Mission Bay parcel located at 1600 Owens Street to Kaiser Permanente during the fourth quarter of 2013, Alexandria has fully completed the monetization of its Mission Bay cluster.
Since its founding in 1994, Alexandria has established a dominant market presence in the top urban innovation centers, including San Francisco, Greater Boston, New York City, Seattle, and San Diego. Alexandria is known for its high-quality and diverse client tenant base with approximately 51% of Alexandria's total annualized base rent resulting from investment-grade client tenants (an industry-leading percentage). Alexandria has a proven track record of developing Class A, urban science and technology campuses in AAA locations offering highly creative amenities that drive client tenant productivity and foster innovation, providing access to sophisticated capital and talent, and gathering its longstanding and expansive network for collaborative conferences and events.
SOURCE Alexandria Real Estate Equities, Inc.