- Alexandria Real Estate Equities sold 1165 Eastlake Ave. E in Seattle’s Lake Union area to Fred Hutch Cancer Center for $150M.
- A new joint venture was formed between Alexandria and Fred Hutch for two neighboring properties totaling 206 KSF.
- Seattle’s life science market is growing rapidly, with major players like Fred Hutch, AstraZeneca, and Moderna establishing a presence.
- Alexandria will use the sale proceeds to fund ongoing development and redevelopment projects.
According to CommercialSearch, Alexandria Real Estate Equities has completed the sale of its life science building in Seattle’s Lake Union submarket to long-term tenant Fred Hutch Cancer Center for $150M.
Behind The Sale
Delivered in 2021, the 100 KSF Class A+ facility at 1165 Eastlake Ave. E is a prime example of Seattle’s growing life science real estate market.
Additionally, Alexandria has entered into a new joint venture with Fred Hutch involving two nearby properties at 1201 and 1208 Eastlake Ave. E, maintaining a 30% ownership in the assets.
Seattle Sciences
Seattle has solidified its position as a life science hub, attracting leading biotech companies such as Fred Hutch, AstraZeneca, and Moderna.
This growth is fueled by the proximity to top research institutions like the University of Washington and advancements in biotechnology.
Meanwhile, as venture capital funding slowed down in 2024, this specific submarket’s long-term potential remains strong. With 9 MSF of available space and a vacancy rate above 11%, it indicates significant room to run.
Broader Strategy
The sale of 1165 Eastlake property aligns with Alexandria’s broader strategy of reinvesting in development and redevelopment projects.
The company remains active across major life science markets, having recently secured long-term leases in San Diego and South San Francisco.
In addition, Alexandria has renewed early leases at its Seattle properties, demonstrating continued tenant demand despite the challenges of rising vacancies and slowed venture funding.
Market Outlook
Seattle’s life science market continues to show a supply-demand imbalance, offering favorable opportunities for tenants, according to JLL.
The city remains an attractive destination for biotech firms due to strong NIH funding, startup activity, and the research prowess of local institutions.
However, construction of new projects is slowing, with just three developments underway and expected to deliver by 2025.
