PASADENA, Calif., June 7, 2016 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), a real estate investment trust uniquely focused on world-class collaborative science and technology campuses in urban innovation clusters, today announced the early delivery of a ground-up development of 295,609 rentable square feet (RSF) at 5200 Illumina Way, Building 6, to Illumina, Inc. in San Diego's University Town Center (UTC) submarket.
In late June 2016, Alexandria will deliver the project to Illumina, the global leader in DNA sequencing and array-based technologies for large-scale analysis of genetic variation and function. This third build-to-suit project by Alexandria will increase Illumina's world-class headquarters campus from 497,078 RSF to 792,687 RSF. There is potential for expansion of an additional 386,044 RSF of future development space on this world-class campus in UTC.
Additionally, in 2Q16, Alexandria expects to complete and deliver approximately 30,000 RSF at the 430 East 29th Street development in New York City's Manhattan submarket, with the remaining approximately 32,000 RSF substantially delivered later in 2016. 430 East 29th Street is the 418,639 RSF, 91% leased second tower at the Alexandria Center® for Life Science – New York City, Manhattan's first and only world-class commercial life science campus. The 727,674 RSF campus, which is anchored by Eli Lilly and Company, Roche, Pfizer Inc., Nestlé Skin Health and Intra-Cellular Therapies, Inc., has become the epicenter for scientific and technological innovation in New York City. The company also holds an option for land that will provide expansion at this campus for an additional 420,000 RSF in the future.
Project completions expected to be delivered from 2Q16 through 4Q16 aggregate 1.4 million RSF, including the approximately 330,000 RSF for delivery in 2Q16. The remaining 1.1 million RSF are expected to be completed and delivered into service primarily in 4Q16, including the following projects:
- A 530,477 RSF development project at 50/60 Binney Street on the Alexandria Center® for Kendall Square campus in the Cambridge submarket of Greater Boston; 98% leased to Sanofi Genzyme at 50 Binney Street (274,734 RSF) and bluebird bio, Inc. at 60 Binney Street (255,743 RSF)
- A 304,326 RSF redevelopment project at 10290 Campus Point Drive in the UTC submarket of San Diego; 100% leased to Eli Lilly and Company
- One to two of the remaining three floors aggregating 151,432 RSF in the 413,799 RSF development project at 360 Longwood Avenue in the Longwood Medical Area submarket of Greater Boston
- A 61,755 RSF development project at 4796 Executive Drive in the UTC submarket of San Diego; 100% leased to Otonomy, Inc.
- A 59,783 RSF redevelopment project at 11 Hurley Street in the Cambridge submarket of Greater Boston; 100% leased to Editas Medicine, Inc.
"Alexandria's highly experienced team continues to execute on our unique business strategy, and we are pleased with our continued success and disciplined growth through our well-leased, multiyear pipeline of development and redevelopment projects. Our value-creation pipeline provides significant visible growth in net operating income over the next few years," said Joel S. Marcus, chairman, chief executive officer and founder of Alexandria Real Estate Equities, Inc. "We look forward to discussing our prudent and forward-looking approach to value-creation at REITWeek 2016: NAREIT's Investor Forum in New York City this week."
Alexandria continues its disciplined allocation of capital to Class A buildings in urban innovation clusters. Its value-creation pipeline aggregating 3.5 million RSF of highly leased buildings has significant projected deliveries anticipated primarily from 2Q16 through 2017, with one key projected delivery in 2018. This growth pipeline will generate significant incremental annual net operating income in a range from $195 million to $210 million. The weighted-average initial cash yield on Alexandria's total investment for this highly leased pipeline is solid at approximately 7%.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE) is an urban office REIT uniquely focused on world-class collaborative science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $11.1 billion and an asset base in North America of 24.5 million square feet as of March 31, 2016. The asset base in North America includes 18.9 million RSF of operating properties and development and redevelopment projects (under construction or pre-construction) and 5.6 million square feet of future ground-up development projects. Alexandria pioneered this niche in 1994 and has since established a dominant 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 assets clustered in urban 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. We believe these advantages result in higher occupancy levels, longer lease terms, higher rental income, higher returns and greater long-term asset value. For more information, please visit www.are.com.
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SOURCE Alexandria Real Estate Equities, Inc.