219 E. 42nd St.,/Google maps
NEW YORK CITY—A joint venture Alexandria Real Estate Equities along with David Werner Real Estate, Deutsche Bank and the State of Wisconsin Investment Board purchased Pfizer Corporation's Manhattan headquarters at 219 E. 42nd St. and 235 E. 42nd St. for a total of $363.5 million, according to Real Capital Analytics. The deal is subject to a partial sale leaseback to Pfizer for at least five years. This gives Pfizer time to remain in its location, until its new space at the Spiral is completed. Tishman Speyer's 65-story skyscraper at 66 Hudson Blvd. is scheduled to open in 2022.
Alexandria released a statement that it is purchasing 219 E. 42nd St. from Pfizer for $203 million. The pharmaceutical company had made plans to sell both its E. 42nd streets in April, when it signed a lease to move its headquarters to the Spiral in Hudson Yards.
The E. 42nd Street properties well suits Alexandria's bio and technology focus as it is in the heart of Manhattan's East Side medical corridor, close to academic and medical institutions.
Constructed in 1905, the 10-story building at 219 E. 42nd St. offers 350,000 rentable square feet. Built in 1960, the 33-floor structure at 235 E. 42nd St. has 823,623 square feet. The property will provide significant and immediate net operating income growth with a strong yield from an investment grade tenant, according to Alexandria. The company further states that upon the expiration of Pfizer's lease, the asset will provide additional opportunities to increase cash flows by converting and redeveloping the property into office and laboratory space.
Cushman & Wakefield's Doug Harmon and Adam Spies brokered the deal.
“Alexandria has been at the vanguard of catalyzing the evolution and growth of the New York City life science cluster for more than a decade,” says Joel S. Marcus, Alexandria's executive chairman and founder. He points out that in addition to developing the life sciences campus, the REIT brought together biopharma and academic expertise to drive biomedical innovation; supported leading early-stage companies; bolstered scientific collaborations; and provided early stage venture capital investment for life sciences companies.
Opening in 2010, the Alexandria Center for Life Science has collaborated with multinational companies, such as Pfizer Inc., Eli Lilly and Company and Roche. They also worked with earlier stage companies, including Intra-Cellular Therapies, Kallyope, MeiraGTx Holdings, Lodo Therapeutics Corporation and Petra Pharma Corporation. The latter two were launched by Accelerator Life Science Partners, a life science investment and management firm co-founded by Alexandria.
As of March 31, 2018, Alexandria's New York City asset base comprises 728,000 rentable square feet across a two-building office and laboratory campus. The property has future development potential for an additional 420,000 rentable square-foot tower. The campus is 100% leased to innovative life science organizations.
A national company, headquartered in Pasadena, CA, the REIT also has offices elsewhere in the states of CA, MA, MD, NC, NY and WA.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
