Alexandria Real Estate Equities, Inc. Closes Strategic Partial Interest Transaction for 15 Necco Street in the Seaport Innovation District of Greater Boston
PASADENA, Calif., April 12, 2023 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative life science, agtech and advanced technology campuses in AAA innovation cluster locations with an asset base in North America of nearly 75 million SF, today announced that it has transferred, through an affiliate, a partial interest in 15 Necco Street in the Seaport Innovation District submarket of Greater Boston to a U.S. affiliate of Mori Trust Co., Ltd. Proceeds from this transaction will be used to fund the development of 15 Necco Street, a 345,995 RSF Class A property currently under construction and expected to deliver in late 2023. The state-of-the-art facility was selected by longtime Alexandria tenant Eli Lilly and Company as the home of the Lilly Institute for Genetic Medicine, which will leverage promising RNA- and DNA-based technologies to develop therapies with the potential to treat or prevent diseases in a manner that is challenging or not possible with traditional medicines.
"Our dominant one-of-a-kind platform, in combination with a scarcity of high-quality life science real estate assets, continues to drive demand for investment opportunities arising from our value harvesting and capital recycling strategies," said Hunter L. Kass, executive vice president and regional market director of Greater Boston at Alexandria Real Estate Equities, Inc. "15 Necco — with its long-term lease to a strong credit tenant in Lilly, highly sustainable building design and creative amenities in an exceptional transit-friendly location — is an ideal example of the desirability and value of Alexandria's assets. We are excited to build a long-term relationship with Mori Trust."
Developed in partnership with National Development, 15 Necco Street is an amenity-rich building with a stunning waterfront presence, critical adjacency to Cambridge's Kendall Square, including convenient access to major transportation hubs, and a uniquely inspiring design and building-activation program to help Lilly attract and retain people from Greater Boston's deep life science talent pool. The building showcases Alexandria's proactive approach to mitigating greenhouse gas emissions by prioritizing energy efficiency, leveraging geothermal energy to reduce fossil fuel use and utilizing 100% renewable electricity generated on and off site. In addition to relying on alternative energy sources, the transformative facility will incorporate numerous wellness features that promote the overall physical and mental well-being of its occupants. 15 Necco Street is targeting LEED Gold Core & Shell, Fitwel Life Science and WiredScore Platinum certifications.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since its founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative life science, agtech and advanced technology campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and Research Triangle. Alexandria has a total market capitalization of $35.0 billion and an asset base in North America of 74.6 million SF as of December 31, 2022, which includes 41.8 million RSF of operating properties and 5.6 million RSF of Class A properties undergoing construction, 9.9 million RSF of near-term and intermediate-term development and redevelopment projects and 17.3 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A properties clustered in life science, agtech and advanced technology campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns and greater long-term asset value. For additional information on Alexandria, please visit www.are.com.
About National Development
For over 30 years, National Development has been one of the most active real estate investment and development firms in New England. The firm has developed and/or acquired over 30 million SF across a broad range of product types, creating great places and attractive investments. For more information, visit natdev.com or follow @nationaldevelop on Twitter and Instagram.
About Mori Trust Co., Ltd.
Mori Trust operates 65 buildings, residences, and commercial retails, and 30 hotels and resort facilities across Japan (as of March 2022), centering on three businesses: real estate business, hotel & resort business, and investment business), as well as a wide range of businesses that enhance the value of cities. On the real estate developments side, aiming to contribute to improving the quality of engagement and communication, last year Mori formulated its new office vision, DESTINATION OFFICE, in order to support the creation of offices that attract workers. On the hotels and resorts side, Mori is building a luxury destination network in Japan of premium hotels located in prime urban and resort locations throughout the country, as part of its vision to promote Japan as a high-end tourism destination. On the investments side, in order to respond quickly to changes in the business environment which may occur in the future, Mori is actively promoting investment in a broad sense, including capital participation in various companies, business alliances, and other venture investments to ensure the growth of the Group. Aiming to create new value by thinking outside the framework of existing businesses, Mori is working on businesses in new areas. In particular, the Group is promoting the workcation business by combining know-how in the real estate business and hotels & resorts business to propose a variety of work styles and to stimulate tourism demand. In addition, Mori is focused on the importance of wellness and launched a full-fledged wellness business in 2020. For additional information, please visit www.mori-trust.co.jp/english/.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding the potential impacts of the partial interest transaction and development of 15 Necco Street on Alexandria's tenants and their businesses, technologies and therapies; the expected timing of completion of construction and occupancy for 15 Necco Street; the expected amenities, architecture and sustainability features, including energy efficiencies and certifications of the property; and the impact of the property on occupants. These forward-looking statements are based on Alexandria's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by Alexandria's forward-looking statements as a result of a variety of factors, including, without limitation, the risks and uncertainties detailed in its filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release, and Alexandria assumes no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in Alexandria's forward-looking statements, and risks and uncertainties to Alexandria's business in general, please refer to Alexandria's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.
CONTACT: Sara Kabakoff, Vice President – Strategic Communications, (626) 788-5578, skabakoff@are.com
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SOURCE Alexandria Real Estate Equities, Inc.
