PASADENA, Calif., Nov. 30, 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, announced today that Merck, known as MSD outside the United States and Canada, one of the world's premier biopharmaceutical companies, has selected Alexandria to develop, construct and operate its new West Coast research facility at 213 East Grand Avenue in the heart of the South San Francisco innovation cluster.
Merck executed a long-term, full-building lease for a nine-story, 294,000 rentable square feet (RSF) laboratory/office campus. The 213 East Grand Avenue campus site is fully entitled, and construction is expected to commence in early 2017. The building, targeted for LEED Platinum certification, is expected to be placed into service in early 2019.
"We are honored to expand our strategic relationship with Merck, one of our current tenants, as the company establishes its San Francisco Bay Area R&D hub," said Joel S. Marcus, chairman, chief executive and founder of Alexandria Real Estate Equities, Inc. "This move is significant for Merck and South San Francisco, bringing another leading pharmaceutical player to the vibrant biotech and pharma community and reinforcing the Bay Area as a leading cluster for discovery and collaboration."
213 East Grand Avenue will offer Merck a long-term real estate solution in close proximity to academic research and startups. The new facility will also offer Merck's employees convenient access to neighborhood businesses in downtown South San Francisco, as well as to the city's new mixed-use, transit-oriented neighborhood between 213 East Grand Avenue and a new Caltrain station. The amenity-rich campus being developed by Alexandria will feature inviting and open green space to promote health and wellness as well as function as an outdoor event space. Upon completion, the site will also include a 300-seat auditorium, a fully equipped fitness center and a lively café and terrace with waterfront views designed to enhance innovation, productivity and collaboration.
"We are excited to partner with Alexandria on this new state-of-the-art research center located in the heart of the Bay Area's life science community," said Dr. Roger M. Perlmutter, president of Merck Research Laboratories.
"We are pleased Merck chose the 213 East Grand Avenue site for its new location in our San Francisco cluster," said Steve Richardson, chief operating officer and regional market director of San Francisco at Alexandria Real Estate Equities, Inc. "As the country's leading urban developer of science and technology campuses, Alexandria brings its expertise in designing, developing and operating inspiring and mission-critical facilities to this project – a research facility that will support Merck in its mission to save and improve lives around the world."
Alexandria's deep expertise and experience in entitlement, design, construction and development, as well as its credible and respectful long-term relationships with key San Francisco government agencies, have enabled the company to successfully operate approximately 3.7 million RSF (including development projects) in the San Francisco Bay Area. Alexandria's San Francisco properties, located in the Mission Bay/SoMa, South San Francisco and Palo Alto/Stanford Research Park submarkets, are nearly 100% leased to high-quality and diverse tenants. Additionally, with more than 500,000 square feet in key future projects in San Francisco, Alexandria is able to provide its tenants with additional expansion opportunities as well as attract new tenants.
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 $13.0 billion and an asset base in North America of 24.5 million square feet as of September 30, 2016. The asset base in North America includes 18.8 million RSF of operating properties and development and redevelopment projects (under construction or pre-construction) and 5.7 million square feet of future ground-up development projects. Alexandria pioneered this niche in 1994 and has since established a significant 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 properties 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. For additional information, please visit www.are.com.
SOURCE Alexandria Real Estate Equities, Inc.