Alexandria Real Estate Equities has successfully secured a 10-year lease extension with Takeda Pharmaceutical Company Limited for 222,925 square feet at the Alexandria Center at Kendall Square mega campus in Cambridge, MA. This extension includes significant increases in rental rates.
With a presence in Cambridge since 1999, Alexandria boasts over 5.4 million RSF across three mega campuses in Kendall Square. The current operation and future development opportunities of the Kendall Square campus alone account for approximately 2.8 million RSF.
In addition to its existing properties, Alexandria completed the development of 75/125 Binney Street in 2015 and effectively monetized it by selling a partial interest to an institutional investor for $438 million (equivalent to $1,880 per RSF) just four years later in 2019. This sale exceeded the book value by $202.2 million and achieved a cash capitalization rate of impressive rate of return at4 .3%.
The biotech giant’s decision to extend their lease is indicative not only of their satisfaction with Alexandra’s services but also speaks volumes about Cambridge’s thriving commercial real estate market.
