Alexandria Real Estate Equities, Inc. Announces Long-Term Lease with Leading Global Commercial-Stage Oncology Company, Onyx Pharmaceuticals, Inc., for New Build-to-Suit Facility in South San Francisco, California
PASADENA, Calif., March 4, 2013 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the largest and leading owner, operator, and developer of high-quality, sustainable real estate for the broad and diverse life science industry, is pleased to announce that Onyx Pharmaceuticals, Inc., a global commercial-stage oncology company, has executed a 10-year lease with an affiliate of Alexandria for a new, single tenant, ground-up development at 269 East Grand Avenue in South San Francisco. This new lease transaction affirms Onyx's continued growth into a successful, commercial-stage biotechnology company, as well as Alexandria's longstanding reputation as the best-in-class provider of high-quality real estate and related solutions for the world's leading life science companies.
"Onyx represents a significant new second generation of biotechnology companies that are commercializing breakthrough, high-impact products that will save lives, manage disease, and reduce the economic burden of disease on society," said Joel S. Marcus, Chairman, Chief Executive Officer and Founder of Alexandria. "We are honored that Onyx and its world-class team have chosen a long-term partnership with Alexandria, and we look forward to their continued growth and success in the years to come."
The ground-up development of this facility is consistent with Alexandria's strategy to transform non-income-producing land into income-producing assets with significant pre-leasing from high-quality client tenants. As an investment-grade REIT, Alexandria also intends to fund this development on a leverage-neutral basis. Alexandria expects to deliver the 269 East Grand Avenue in the fourth quarter of 2014 and is currently negotiating a secured construction loan to provide funding for this project.
Alexandria is the dominant life science owner and operator in the San Francisco Bay Area cluster with approximately 2.9 million rentable square feet (including development and redevelopment assets) in the Mission Bay, South San Francisco, and Peninsula submarkets. In Alexandria's South San Francisco submarket, from the first quarter of 2008 through the third quarter of 2012, Alexandria captured approximately 844,000 rentable square feet of new leases –approximately 724,000 rentable square feet more than the next highest laboratory landlord. Alexandria currently serves approximately 25 client tenants in the South San Francisco submarket including Roche, Onyx Pharmaceuticals, Inc., Theravance, Inc., Crescendo Bioscience, Inc., Exelixis, Inc., Global Blood Therapeutics, Inc., and Stem CentRx, Inc.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), a self-administered and self-managed real estate investment trust (REIT), is the largest and leading investment-grade REIT focused principally on owning, operating, redeveloping, developing, and acquiring high-quality, sustainable real estate for the broad and diverse life science industry. Founded in 1994, Alexandria was the first REIT to identify and pursue a primary focus on the laboratory niche and has since had the first-mover advantage in every core life science cluster location including Greater Boston, the San Francisco Bay Area, San Diego, New York City, Seattle, Suburban Washington, D.C., and Research Triangle Park. Alexandria's high-credit client tenants span the life science industry, including renowned academic medical research centers, multinational pharmaceutical companies, public and private biotechnology entities, U.S. government research agencies, medical device companies, industrial biotechnology companies, venture capitalists, and life science product and service companies. Forty-seven percent of Alexandria's total annualized base rent is from investment-grade client tenants. As the recognized real estate partner of the life science industry, Alexandria has a superior track record in driving client tenant productivity, collaboration, and innovation through its CBD locations adjacent to leading academic medical research centers, best-in-class laboratory/office space, unparalleled life science real estate expertise and services, and longstanding and expansive network in the life science community, which we believe 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.
This press release contains forward-looking statements within the meaning of the federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in our Annual Report on Form 10-K and our other periodic reports filed with the Securities and Exchange Commission.
SOURCE Alexandria Real Estate Equities, Inc.