July 16, 2018
Pasadena, CA-based Alexandria Real Estate Equities, Inc. acquired 219 East 42nd Street in New York for $203 million. The roughly 350,000-square-foot building will be leased back on a triple net basis by the purchasing entity, 219/235 East LLC, to Pfizer Inc., which plans to relocate its global office HQ to Manhattan’s Hudson Yards neighborhood in 2022.
The 10-story office building on Manhattan’s East Side Medical Corridor delivers critical adjacency to New York City’s renowned academic and medical institutions. Alexandria says the acquisition represents significant and immediate NOI growth, with a strong yield from an investment-grade tenant.
Upon expiration of the lease, the asset will provide the REIT the opportunity to increase cash flows through conversion and redevelopment into office/laboratory space near its world-class life science campus that anchors the corridor.
Alexandria’s John H. Cunningham says, “The success of the Alexandria Center and the multidisciplinary efforts of our team have been instrumental in the growth of New York City’s life science cluster.”
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