NEW YORK — August 11, 2015 —TIAA-CREF, a leading U.S. financial services organization and the nation’s largest manager of U.S. institutional tax-exempt real estate assets*, today announced it has agreed to acquire a 70% stake in 225 Binney Street in Cambridge, MA from Alexandria Real Estate Equities, Inc.
225 Binney Street is composed of a recently constructed six-story Class A office building and two renovated historic brick-and-beam buildings, totaling 305,212 square feet. The Cambridge, MA submarket is home to a dynamic life science industry within Boston’s innovation hub. The newly constructed building has achieved LEED Gold certification.
The property is 100% net leased to Biogen, a multinational biotechnology company, as the location for its global headquarters, via a long-term lease.
“This investment offers a majority interest in a well-located Class A office asset that is 100% net leased on a long-term basis to a high-quality tenant. It also offers us new exposure to the Cambridge submarket and to the life science office submarket, both of which have very healthy fundamentals,” said Sam Flood, Senior Director of Acquisitions for TIAA-CREF Global Real Estate.
“Alexandria is honored to announce our joint venture with TIAA-CREF, a great long-term partner. We believe that this deal is a testament to our high-quality asset base and management team. This opportunity allows us to monetize one of our core assets and invest the capital into our highly leased value-creation pipeline,” said Peter Moglia, Chief Investment Officer, Alexandria Real Estate Equities, Inc. “We are looking forward to working with TIAA-CREF on this joint venture and hopefully on future investments together.”
The TIAA Real Estate Account, a TIAA insurance separate account, will hold the property following the acquisition.
UBS Investment Bank acted as exclusive financial advisor to Alexandria Real Estate Equities, Inc.
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $869 billion in assets under management (as of 6/30/2015) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
TIAA-CREF Global Real Estate is the real estate investment and management business of TIAA-CREF. As the nation’s largest manager of U.S. institutional tax-exempt real estate assets* with approximately $58 billion in assets under management, investment vehicles include directly owned properties, joint ventures, mortgages, REITs and funds. The platform has a global presence via the formation of London-based real estate asset management firm TIAA Henderson Real Estate (TH Real Estate), which has $28 billion in assets under management across 50 funds and mandates, bringing the combined worldwide assets under management for TIAA-CREF Global Real Estate and TH Real Estate to over $86 billion (as of 6/30/2015).
Alexandria Real Estate Equities, Inc. (NYSE:ARE) is the largest and leading office REIT uniquely focused on collaborative science and technology campuses in urban innovation clusters with a total market capitalization of $10.7 billion as of June 30, 2015, and an asset base of 31.1 million square feet, including 18.8 million RSF of operating and current value-creation projects, as well as an additional 12.3 million square feet of near-term and future ground-up development projects. Alexandria pioneered this niche in 1994 and has since established a dominant market presence in AAA locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle Park. Alexandria is known for its high-quality and diverse client tenant base, with approximately 53% of total annualized base rent as of June 30, 2015, generated from investment-grade client tenants – a REIT industry-leading percentage. Alexandria has a longstanding and proven track record of developing Class A assets clustered in urban science and technology campuses that provide its innovative client 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. Management believes these advantages result 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.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. C25388*According to Pensions & Investments, Real Estate Managers ranking, October 27, 2014