Alameda biotech HQ building is bought for more than $150 million

A big Alameda office building that's leased to a fast-growing biotech company has been bought by a real estate investment company.

ALAMEDA — A big office building in Alameda that’s been leased to a fast-expanding biotech company has been bought by a veteran real estate investment firm.

Stockbridge Capital Group, through an affiliate, bought the office building in Alameda’s red-hot Harbor Bay area for $158.9 million, documents filed on March 1 with the Alameda County Recorder’s Office show.

San Francisco-based Stockbridge completed the purchase of the building at 1951 Harbor Bay Parkway through an all-cash deal, according to the county property records.

The seller of the building was the project’s developer, a joint venture of real estate firms srmERNST Development Partners and Hillwood Investment Properties.

In 2020, Stockbridge Capital bought The Waterfront, an office campus in Harbor Bay Business Park. Stockbridge paid $127 million in cash for the six-building complex. The srmERNST and Hillwood venture also sold these buildings.

Alameda, in particular the Harbor Bay district, has become a hotbed for commercial property purchases on the part of real estate companies and investment firms that are convinced the biotech companies in this part of the East Bay will help keep vacancy rates low and rents robust.

In 2021, investors grabbed several office buildings and land sites in Alameda in a brief period, paying a combined $171 million for the properties.

The most recent purchase involving the Exelixis-leased new building signals that confidence in Alameda biotech companies remains steady.

Exelixis specializes in the creation and commercialization of medicines to combat cancers that are difficult to treat.

In 2021, Exelixis earned $231.1 million on revenue of $1.43 billion, according to the Yahoo Finance site. The profits were more than double from the 2020 earnings and revenue was up 45%.