By Meghan Hall
Pasadena, Calif.-based Alexandria Real Estate Equities has acquired or developed a number of properties throughout the Puget Sound over the years. However, until now, one market has remained largely untapped for the life sciences firm: Bellevue. While Bellevue has exploded in growth and development, Alexandria has largely pursued properties in Seattle and the local suburb of Bothell, Wash. However, in a deal that closed just yesterday, Alexandria moved into Bellevue with the $77.5 million acquisition of Twelfth Place Business Park.
The property is located at 1239 120th Ave. NE. According to public records, the seller of the property is Pine Forest Properties. According to Pine Forest’s website, the asset consists of a 130,000 square foot office park spread across three buildings. It was originally developed by Pine Forest in 1983.
Pine Forest Properties had been planning to turn the 5.2 acre site into 400,000 square feet of office space spread across two buildings, 550 multifamily residences and 1,400 parking stalls. It is unclear how Alexandria plans to proceed with the property at this time.
The asset is extremely well-located in a growing part of Bellevue, blocks from the Spring District where Met has made its mark, as well as minutes from Kaiser Permanente Bellevue Medical Center and Overlake Medical Center.
Alexandria has invested heavily around the Puget Sound. Several months ago, Alexandria struck a deal with Clarion Partners to acquire 70 percent of a South Lake Union life sciences portfolio located along Eastlake Ave. E. and Blaine Street. Alexandria paid $315 million in the deal. The Registry also reported that the cap rate on the sale was in the low 4 percent range, and the capital source that Clarion used on this transaction was the Clarion Lion Properties Fund, which is Clarion’s flagship core open-ended commingled fund.
In Bothell, Alexandria spent $32 million to acquire Canyon Park 228, and another $200 million to purchase the CAnyon Park Business Center. In March of this year, Alexandria also acquired Canyon Park Heights, also in Bothell, for $45 million.
Alexandria’s investment in the area is expected to keep coming. In the first quarter of 2022, Alexandria is expected to close on the acquisition of the Mercer Mega Block in the Lake Union neighborhood of Seattle, according to a recent SEC filing. Alexandria will pay $143.5 million for the property, where it has 800,000 square feet of future development planned.