Alexandria Real Estate Equities, Inc. Closes Strategic Value-Harvesting Disposition of 1165 Eastlake Avenue East in the Lake Union Submarket of Seattle
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PASADENA, Calif., Sept. 12, 2024 ~ Seattle, WA - Alexandria Real Estate Equities, Inc. (NYSE: ARE) has announced the completion of the sale of 1165 Eastlake Avenue East in Seattle's Lake Union submarket to longstanding tenant Fred Hutch Cancer Center (Fred Hutch). The sale was made through an affiliate and the fully leased 100,086 RSF single-tenant Class A+ life science facility sold for $150.0 million at a strong capitalization rate of 4.9%.

The property was developed by Alexandria and delivered in 2021, solidifying their position as the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative mega campuses in AAA life science innovation cluster locations.

In addition to the sale, Alexandria also entered into a strategic joint venture partnership with Fred Hutch for two other properties in the area - 1201 and 1208 Eastlake Avenue East. These properties have a combined space of 206,031 RSF and Alexandria's ownership interest remains unchanged at 30%. As part of this transaction, Fred Hutch also executed early renewals at both properties, including a 15-year lease extension at 1201 Eastlake where they occupy the entire building.

According to Thomas J. Lynch Jr., MD, president and director of Fred Hutch, this opportunity allows them to swiftly advance their research and expand their South Lake Union campus in the heart of Seattle's life science and biotech community. He also expressed appreciation for the collaborative relationship with Alexandria in finalizing this important agreement that will support their mission to prevent, treat and cure cancer and infectious disease.

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Hart Cole, executive vice president – capital markets/strategic operations and co-regional market director – Seattle of Alexandria stated that they have been actively involved in cultivating a world-class life science cluster in Seattle since entering the region in 1996 through their acquisition and leaseback of the original Fred Hutch campus. He also emphasized the importance of Fred Hutch as an innovation engine in the Seattle life science market and their pleasure in enabling their growth and deepening their relationship as they expand within the Alexandria Center® for Life Science – Eastlake mega campus ecosystem.

The proceeds from the sale of 1165 Eastlake will be reinvested into Alexandria's highly leased development and redevelopment pipeline, which includes research and development centers for top life science companies such as Bristol Myers Squibb and Novo Nordisk. As of June 30, 2024, 5.3 million RSF of Class A/A+ properties undergoing construction and one committed near-term project are expected to deliver incremental annual net operating income aggregating $480 million by 1Q28.

Alexandria Real Estate Equities, Inc. (NYSE: ARE) is an S&P 500® company with a total market capitalization of $32.5 billion as of June 30, 2024. They are a best-in-class, mission-driven life science REIT that has been making a positive and lasting impact on the world since their founding in 1994. With a strong presence in AAA life science innovation cluster locations such as Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City, Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative mega campuses.

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Their asset base in North America includes 42.1 million RSF of operating properties and 5.3 million RSF of Class A/A+ properties undergoing construction and one committed near-term project expected to commence construction in the next two years. Alexandria has a proven track record of developing Class A/A+ properties clustered in mega campuses that provide innovative tenants with highly dynamic and collaborative environments to successfully recruit and retain world-class talent while inspiring productivity, efficiency, creativity and success.

In addition to their real estate ventures, Alexandria also provides strategic capital to transformative life science companies through their venture capital platform. They believe their unique business model and diligent underwriting ensure a high-quality and diverse tenant base, resulting in higher occupancy levels, longer lease terms, higher rental income, higher returns and greater long-term asset value.

For more information on Alexandria Real Estate Equities, Inc., please visit www.are.com.
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