PASADENA, Calif., May 28, 2013 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the leading and largest owner, operator, and developer of high-quality, sustainable real estate for the broad and diverse life science industry, is honored to announce that a leading mid-cap life science company with an equity market capitalization of approximately $7 - $10 billion will establish its flagship Bay Area R&D center at 499 Illinois Street in Mission Bay, San Francisco. Located in the heart of one of the life science industry's most vibrant, innovative and entrepreneurial clusters, directly adjacent to UCSF'S research campus and the three new UCSF hospitals complex, 499 Illinois Street will provide this key client tenant with a unique advantage in retaining its existing world-class workforce, attracting new talent, and facilitating its continued growth and scientific dominance within its field. Additionally, as a global company with a broad customer base around the world, the Company's decision to locate this R&D center at 499 Illinois Street reaffirms Mission Bay's preeminent position as a leading international life science ecosystem comprised of world-class pharmaceutical, biotechnology, academic, government, and venture capital entities that are collectively developing novel, breakthrough products that will save lives, manage disease and reduce the economic burden of disease on society.
Alexandria's client tenant has signed a 10-year lease at 499 Illinois Street for approximately 97,700 rentable square feet (RSF), or 45%, of the 219,600 RSF facility, consistent with the Company's current "initial yield" projections. The client tenant will open a state-of-the-art R&D center in Mission Bay focused on the development of next generation products and services, as well as a customer demonstration and training center.
Alexandria's Mission Bay life science cluster is renowned for its significant talent base – a dense concentration of Nobel Prize winners, scientists, doctoral students, entrepreneurs, venture capitalists, and technologists from first-class client tenants including the University of California, San Francisco (UCSF), California Institute for Quantitative Biosciences (QB3), Bayer AG, Celgene Corporation, Fibrogen, Inc., Nektar Therapeutics, Inc., and blue chip venture capital firms such as Novo Ventures, OrbiMed Advisors, Third Rock Ventures, venBio, and Versant Ventures.
At the heart of Mission Bay, UCSF is leading the Precision Medicine revolution, which aims to integrate genomic, clinical and environmental data into routine clinical practice and improve patient diagnosis and treatments. In recent weeks, Mission Bay has garnered international acclaim with the announcement that two major drug developers – Roche and Bayer AG – have initiated strategic partnerships with QB3. In addition to Roche and Bayer AG, Novartis AG and Pfizer Inc. have also joined the QB3 program. With innovative collaborations pioneered by QB3 as well as UCSF's intensifying intellectual and capital investment in translational medicine, Mission Bay has become the epicenter of life science innovation, collaboration and translation in the San Francisco Bay Area. The current market demand is very strong for 499 Illinois Street particularly, and Mission Bay more broadly, from multiple market segments including life science, translational clinical uses and the rapidly expanding technology sector."We are honored to welcome this exceptional client tenant to the Mission Bay life science ecosystem and 499 Illinois Street for the creation of an iconic R&D center," said Stephen A. Richardson, Chief Operating Officer and Regional Market Director of Alexandria's San Francisco Bay Area Cluster. "This Company is a world-class organization, and we look forward to integrating its team into the highly innovative and collaborative Mission Bay life science community." The client tenant's Mission Bay R&D center will feature unique and creative amenity spaces, including a high-quality cafe, an activated bay front plaza with distinct recreational areas, and a cutting-edge fitness center. This iconic campus environment, ideally situated within the highly innovative and urban Mission Bay life science ecosystem, will provide the Company with a unique advantage in recruitment and retention, as well as driving productivity for this world-class organization.