The real estate investment arm of MIT is charged with finding revenue-generating opportunities, but McQuaid says the ability to put money back into the neighborhood is also of importance. “We want to do what we can to improve the area,” he says.

Based in Pasadena, CA, Alexandria secured the properties involved beginning in 2001 when it paid $35.6 million for 770, 784 and 790 Memorial Dr., the middle of which served as the long-time headquarters of Polaroid Corp. The 3.8-acre complex overlooking the Charles River was purchased by Alexandria during construction of 770 and 790 Memorial Dr., a pair of laboratory structures totaling 100,000 sf. According to McQuaid, the two new buildings are involved in MIT's deal, and not 784 Memorial Dr. itself.

Alexandria subsequently acquired 161-171 and 170-176 Sidney St. in late 2005 for $4.8 million; paid $72.7 million for the 128,000-sf 300 Third St. in March 2006; and bought property on Brookline and Erie streets for $11.1 million a year ago this month, headlined by 99 Erie St. The total price paid by Alexandria for the properties involved in the MIT deal was $124.2 million. There is about 300,000 sf of existing space aggregate for the assets, which also includes extensive parking. The biggest price paid by MIT was $16.6 million to buy into 300 Third St., while the Memorial Dr. ground lease was placed at $12.3 million.

Calls to Alexandria were not returned by GlobeSt.com's press deadline. One industry observer says the arrangement is unique in terms of the deal's extended length. In the meantime, there are no encumbrances to prevent Alexandria from developing additional space on the properties, says McQuaid. “It's up to them” to do what they want, he says.