February 4, 2016
TIAA-CREF acquired an interest in two life sciences buildings in San Francisco’s Mission Bay/South of Market district from Alexandria Real Estate Equities for $262.9-million. The pension fund claimed a 40 percent stake in 409-499 Illinois St. and a 49.9 percent stake in 1500 Owens St., properties that are 100-percent leased and combined total more than 600,000 square feet.
The interest in the Illinois St. property was sold at a cap rate of 4.5 percent. The cap rate on the partial sale of the Owens St. property was 4.8 percent.
These are the first transactions that TIAA-CREF has executed with Pasadena-based Alexandria. Factors that drove the investment decision include an aging population, longer life expectancies and limited supply of new life sciences properties.