By Meghan Hall
Much of Bellevue’s building boom has been related to major tech companies expanding their portfolios. Now, life science developers are adding their own plans to the mix. At the end of April, Pasadena, Calif.-based Alexandria Real Estate Equities submitted plans for the Alexandria Center for Science and Technology, which will add 1.2 million square feet of life science space near the Spring District.
The project site is located at 1239 120th Ave. NE. Totaling 8.3 acres, it would be developed with three life science and office buildings totaling 700,000 square feet. Two additional multifamily buildings–to be developed by Pine Forest, Clarion Partners and Gables Residential–will also be part of the site. In all, there will be about 432 units.
Plans also call for 1,770 underground parking spaces as well as 16,000 square feet of retail, with a particular emphasis on food and beverage vendors.
The development will be constructed in four phases: Clarion and Gables will build their residential component of the project first, and then about 225,000 square feet of office and lab space will follow. The third phase will include an additional 442,500 square feet of office and lab, followed by Pine Forest’s 132 units.
Alexandria first entered the Bellevue commercial real estate market in December of 2021 with its acquisition of the project site from Pine Forest for $77.5 million. Currently, the property is developed with a 130,000 square feet of office space, which was built by Pine Forest in 1983.
The asset is extremely well-located in a growing part of Bellevue, blocks from the Spring District where Meta 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. Alexandria recently 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.
During the first quarter of 2022, Alexandria reported $615.1 million in revenue, up from $479.8 million during the first quarter of 2021. In addition to Bellevue, Alexandria has a number of other projects in the works. The company kicked off a 345,995 rentable square foot project at 15 Necco Street in the Seaport Innovation District submarket of Boston, and it also started construction on 192,0000 rentable square feet at 9810 Darnestown Road in Rockville, M.D. The project is fully leased.
Over the next six quarters, the company believes that its projects will generate $665 million worth of incremental annual rental revenue, primarily from the second quarter of 2022 through the first quarter of 2025. Eight million of its value-creation projects are under construction or will start construction in the next year and a half, 77 percent of which are leased or in negotiations.