Alexandria Real Estate is continuing to buy up office space in San Diego. In a recent transaction, the company purchased a 302,727 square-foot office portfolio in the Carlsbad submarket. According to a third quarter San Diego office market report from Newmark, the real estate investment firm purchased the property for $135.5 million, or approximately $448 per square foot.
Public records show that the portfolio, which is located at 5205-5600 Avenida Encinas, was built on 12.71 acres and features flexible workspace across three stories. The property was sold by Cruzan, a Solana Beach-based developer, which built the property in 2015.
The office portfolio currently has a variety of tenants, including Kinnetic Laboratories Inc., Herra Hub Carlsbad, Walmart Labs and Verve, among several others.
Located in the Carlsbad submarket of San Diego, the asset is near a variety of retail and commercial office properties. The property is also located within close proximity to Interstate 5 and just a short drive from the California coast.
The recent acquisition by Alexandria Real Estate, however, is not the company’s first in San Diego. Most recently, Alexandria Real Estate acquired a 482,153 square-foot office portfolio in San Diego’s Sorrento Mesa submarket. The property was sold by John Hancock Real Estate for $298.5 million, or $619 per square foot.
In total, the company owns approximately 6.9 million square feet of commercial assets throughout various San Diego submarkets. These include properties in Torrey Pines, University Town Center, Sorrento Mesa and Sorrento Valley.
According to the company’s website, Alexandria Real Estate was founded approximately 27 years ago with the mission of owning, operating, and developing life science, agtech, and technology campuses throughout key technology clusters in the U.S. As well as San Diego, Alexandria Real Estate’s properties can be found in San Francisco, Seattle, Maryland, New York City and the Greater Boston area.