Pasadena-Based Company Buys Palo Alto Building From Stanford University

Pasadena-based Alexandria Real Estate Equities Inc. has purchased an office building in Palo Alto from Stanford University for $115.2 million, according to a report by the San Jose Mercury News.

The deal for the 100,000 square-foot Class A office building at 3180 Porter Drive in prestigious 700-acre Stanford Research Park was completed early this month, the report said.

The acquisition is Alexandria’s latest move to expand its greater Stanford innovation cluster footprint. Citing Santa Clara county records, the Mercury News report said Alexandria has now spent about $815 million to buy properties in Palo Alto since 2018 when the company began buying parcels in the Silicon Valley city.

Alexandria’s affiliate in San Francisco pursued the acquisition, the report said.

Alexandria first purchased the Embarcadero Place office complex on Geng Road in Palo Alto in 2018 for $136 million, according to the Mercury News. In January 2019, the company spent $100.3 million for an office building at 3170 Porter Drive that’s leased to Jazz Pharmaceuticals. In August 2019, Alexandra paid $97 million for an office building at 3160 Porter.

Last December, Alexandria paid $291 million for a vast property near Fabian Way in Palo Alto that contains several aging buildings previously owned by Space Systems/Loral, LLC, a well-known defense contractor.

In February, the company paid $75.9 million for office buildings at 3412 and 3330 Hillview Ave. in the same city, the newspaper reported.

Alexandria Real Estate Equities Inc. focuses on investments in office buildings and laboratories leased to tenants in the life science and technology industries. The company also has a venture capital arm, Alexandria Venture Investments, which invests in life sciences firms.

For more information, visit www.are.com.