Alexandria Real Estate Equities Expands Cambridge Ma Commercial Real Estate Market Footprint
Alexandria Real Estate Equities (NYSE: ARE) has announced that it will further expand its presence in the Cambridge Ma commercial real estate market. Alexandria will soon acquire and expand upon the Kendall Square campus. According to a regulatory filing, this mixed-use facility will be purchased from DivcoWest for $725 million. The deal equates to a whopping $1,124 per square foot. The site’s sale carries an outstanding $203 million secured note payable at a 4.82 percent interest rate. This note payable matures in February of 2024.
The acquisition further bolsters Alexandria’s status as one of the area’s most successful life sciences landlords.
DivcoWest held onto the One Kendall Square for merely two years. The company originally acquired the site for $395 million in January of 2014. One Kendall Square stretches 644,771 square feet. This Cambridge office market facility is home to several technology and life science tenants like Akami Technologies (Nasdaq: AKAM) and InVivo Therapeutics (Nasdaq: NVIV). Several restaurants are also present in the space. One Kendall Square workers enjoy lunches, snacks and coffee at restaurants like The Friendly Toast and Cambridge Brewing. All in all, this Cambridge office market mixed-use facility is 98.5 percent full. DivcoWest is also currently in the midst of planning out a 42-acre development space in the East Cambridge office market. This property was purchased last summer for $291 million.
It is worth mentioning that 55 percent of the One Kendall Square’s tenant leases will expire by 2019.
Just under one-half of the nearly 650,000 square foot campus is made up of office space that yields rents of around $47 per square foot. According to Alexandria representatives, the company will likely convert office sites to laboratory space with the aim of generating even higher rents to boost cash flow in the short-term. The company’s representatives also stated that Alexandria is set to take advantage of external growth opportunities throughout the Cambridge Ma commercial real estate market and beyond. In total, Alexandria owns and operates an estimated 5.6 million square feet worth of real estate in the greater Boston area.
If you would like more information regarding the Cambridge Ma commercial real estate market, contact Jeremy Cyrier, CCIM at email@example.com or by phone at 617-674-2043.