Alexandria Real Estate buys 219 East 42nd Street for $203M
Alexandria Real Estate Equities announced it has acquired 219 East 42nd Street for $203M on a fee simple basis, through a membership interest in the purchasing entity 219/235 East LLC. As part of the transaction, 219/235 East LLC leased back 219 East 42nd Street on a triple net basis to Pfizer Inc., which announced earlier this year plans to relocate its global office headquarters to Manhattan's Hudson Yards neighborhood in 2022. Ideally located in the heart of Manhattan's East Side Medical Corridor with critical adjacency to New York City's renowned academic and medical institutions, the acquisition of this approximately 350,000 RSF, 10-story office building represents significant and immediate net operating income growth with a strong yield from an investment-grade tenant. Upon expiration of the lease, this highly sought-after asset will provide Alexandria with the opportunity to increase cash flows through conversion and redevelopment into office/laboratory space.