Alexandria Real Estate to pay $1.52B for Greater Boston campus

Alexandria Real Estate Equities Inc. agreed to pay $1.52 billion to buy 401 Park Dr., 201 Brookline Ave. and one future development opportunity in its Greater Boston life science cluster market.

The campus includes a 973,145-square-foot, 93%-occupied class A office/research and development building at 401 Park Dr. The property offers potential to convert up to 221,000 square feet into office/laboratory space.

Also included in the campus is a 510,116-square-foot office/laboratory building undergoing ground-up development at 201 Brookline Ave. and a future development opportunity for one office/laboratory building for which the company is pursuing net new entitlement rights totaling about 400,000 square feet of office/lab plus retail and common spaces.

The urban office real estate investment trust said achievement of entitlement rights greater than 305,000 square feet will raise its purchase price by a maximum of $97.9 million.

During the fourth quarter, the REIT closed its purchase of 16 properties in key submarkets totaling 3.3 million square feet for $580.7 million and completed dispositions and sales of partial interest worth $884.9 million.

In December 2020, Alexandria committed to a plan to sell three office buildings encompassing 146,842 square feet in submarkets without significant nearby laboratory properties for an estimated sales price of $78.1 million, with closing expected in 2021. The REIT said it recognized impairment charges totaling $25.2 million.

During the fourth quarter, the REIT issued 1.8 million common shares to settle its remaining forward equity sales agreements that were outstanding at the start of the quarter, receiving proceeds of $267.1 million. It also issued 1.5 million common shares under its at-the-market program for $235.0 million in proceeds and sold 400,000 shares under forward equity sales agreements that remain outstanding under its ATM program at $159.09 apiece.

As of Dec. 31, 2020, the remaining total amount available under the REIT's ATM program for future sales of common stock is $547.3 million.

In December 2020, Alexandria extinguished two secured notes payable totaling $108.2 million due in 2023 with a 3.67% weighted-average interest rate and recognized losses on early debt extinguishment of $7.3 million. The REIT said it does not have any debt maturing until 2024.

As of Dec. 31, 2020, the REIT received 99.6% of its December 2020 rents and tenant recoveries.