Pasadena-based realty company Alexandria Real Estate has purchased a two-story office and research building from Stanford University in Palo Alto for $100.3 million, a report in The Mercury News Wednesday said.
The 100,000-square-foot office building at 3170 Porter Drive in Palo Altos Stanford Research Park houses Jazz Pharmaceuticals as the only tenant, the report said. Jazz Pharmaceuticals, which develops and commercializes products to address medical needs in the therapeutic areas of narcolepsy, oncology, pain and psychiatry, has been a tenant since 2015.
Stanford Research Park is a 700-acre business park in Palo Alto that Stanford University launched in 1951. Stanford has structured the property holdings in the park so that the university retains sole ownership of the land beneath the business park. Entities or individuals that purchase buildings in the park are typically granted a ground lease from the university and the buyers own the structures atop the land, the report added.
We are pleased that there is continued interest by outstanding real estate investors for the high-quality assets in Stanford Research Park, Ernest Miranda, a Stanford University spokesman, said in the report.
Alexandria bought the building through an affiliate on January 9, according to Santa Clara County property records. The sale came after Stanford University completed an upgrade for the building that started in 2014.
Stanford University describes Stanford Research Park as home to many of the worlds most cutting-edge and influential companies since 1951.