Consolidated and unconsolidated real estate joint ventures
Jun. 30, 2025
own, develop, and operate real estate properties. As of June 30, 2025, our real estate joint ventures held the following properties:
Property(1) | Market | Submarket | Our Ownership Interest | ||||||
Consolidated real estate joint ventures: | |||||||||
50 and 60 Binney Street | Greater Boston | Cambridge/Inner Suburbs | 34.0% | ||||||
75/125 Binney Street | Greater Boston | Cambridge/Inner Suburbs | 40.0% | ||||||
100 and 225 Binney Street and 300 Third Street | Greater Boston | Cambridge/Inner Suburbs | 30.0% | ||||||
99 Coolidge Avenue | Greater Boston | Cambridge/Inner Suburbs | 76.9% | ||||||
15 Necco Street | Greater Boston | Seaport Innovation District | 56.7% | ||||||
285, 299, 307, and 345 Dorchester Avenue | Greater Boston | Seaport Innovation District | 60.0% | ||||||
Alexandria Center® for Science and Technology – Mission Bay(2) | San Francisco Bay Area | Mission Bay | 25.0% | ||||||
601, 611, 651, 681, 685, and 701 Gateway Boulevard | San Francisco Bay Area | South San Francisco | 50.0% | ||||||
751 Gateway Boulevard | San Francisco Bay Area | South San Francisco | 51.0% | ||||||
211 and 213 East Grand Avenue | San Francisco Bay Area | South San Francisco | 30.0% | ||||||
500 Forbes Boulevard | San Francisco Bay Area | South San Francisco | 10.0% | ||||||
Alexandria Center® for Life Science – Millbrae | San Francisco Bay Area | South San Francisco | 48.5% | ||||||
3215 Merryfield Row | San Diego | Torrey Pines | 30.0% | ||||||
Campus Point by Alexandria(3) | San Diego | University Town Center | 55.0% | ||||||
5200 Illumina Way | San Diego | University Town Center | 51.0% | ||||||
9625 Towne Centre Drive | San Diego | University Town Center | 30.0% | ||||||
SD Tech by Alexandria(4) | San Diego | Sorrento Mesa | 50.0% | ||||||
Pacific Technology Park | San Diego | Sorrento Mesa | 50.0% | ||||||
Summers Ridge Science Park(5) | San Diego | Sorrento Mesa | 30.0% | ||||||
1201 and 1208 Eastlake Avenue East | Seattle | Lake Union | 30.0% | ||||||
199 East Blaine Street | Seattle | Lake Union | 30.0% | ||||||
400 Dexter Avenue North | Seattle | Lake Union | 30.0% | ||||||
800 Mercer Street | Seattle | Lake Union | 60.0% | ||||||
Unconsolidated real estate joint ventures(6): | |||||||||
1655 and 1725 Third Street | San Francisco Bay Area | Mission Bay | 10.0% | ||||||
1450 Research Boulevard | Maryland | Rockville | 73.2% | (7) | |||||
101 West Dickman Street | Maryland | Beltsville | 58.4% | (7) | |||||
(1)Refer to the table on the next page that shows the categorization of our joint ventures under the consolidation framework.
(2)Includes 409 and 499 Illinois Street, 1450, 1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South.
(3)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4165, 4224, and 4242 Campus Point Court.
(4)Includes 9605, 9645, 9675, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.
(5)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.
(6)In addition to the real estate joint ventures listed, we hold an interest in one insignificant unconsolidated real estate joint venture.
(7)Represents a joint venture with a local real estate operator in which our joint venture partner manages the day-to-day activities that significantly affect the economic
performance of the joint venture.
Our consolidation policy is described under “Consolidation” in Note 2 – “Summary of significant accounting policies” to our
unaudited consolidated financial statements. Consolidation accounting is highly technical, but its framework is primarily based on the
controlling financial interests and benefits of the joint ventures. We generally consolidate a joint venture that is a legal entity that we
control (i.e., we have the power to direct the activities of the joint venture that most significantly affect its economic performance)
through contractual rights, regardless of our ownership interest, and where we determine that we have benefits through the allocation of
earnings or losses and fees paid to us that could be significant to the joint venture (the “VIE model”).
We also generally consolidate joint ventures when we have a controlling financial interest through voting rights and where our
voting interest is greater than 50% (the “voting model”). Voting interest differs from ownership interest for some joint ventures. We
account for joint ventures that do not meet the consolidation criteria under the equity method of accounting by recognizing our share of
income and losses.
The table below shows the categorization of our real estate joint ventures under the consolidation framework:
Property(1) | Consolidation Model | Voting Interest | Consolidation Analysis | Conclusion | |||||
50 and 60 Binney Street | VIE model | Not applicable under VIE model | Consolidated | ||||||
75/125 Binney Street | We have: | ||||||||
100 and 225 Binney Street and 300 Third Street | |||||||||
99 Coolidge Avenue | (i) | The power to direct the activities of the joint venture that most significantly affect its economic performance; and | |||||||
15 Necco Street | |||||||||
285, 299, 307, and 345 Dorchester Avenue | |||||||||
Alexandria Center® for Science and Technology – Mission Bay | |||||||||
601, 611, 651, 681, 685, and 701 Gateway Boulevard | |||||||||
751 Gateway Boulevard | |||||||||
211 and 213 East Grand Avenue | (ii) | Benefits that can be significant to the joint venture. | |||||||
500 Forbes Boulevard | |||||||||
Alexandria Center® for Life Science – Millbrae | |||||||||
3215 Merryfield Row | |||||||||
Campus Point by Alexandria | |||||||||
5200 Illumina Way | Therefore, we are the primary beneficiary of each VIE | ||||||||
9625 Towne Centre Drive | |||||||||
SD Tech by Alexandria | |||||||||
Pacific Technology Park | |||||||||
Summers Ridge Science Park | |||||||||
1201 and 1208 Eastlake Avenue East | |||||||||
199 East Blaine Street | |||||||||
400 Dexter Avenue North | |||||||||
800 Mercer Street | |||||||||
1450 Research Boulevard | Equity method of accounting | ||||||||
101 West Dickman Street | |||||||||
1655 and 1725 Third Street | Voting model | Does not exceed 50% | Our voting interest is 50% or less. | ||||||
(1)In addition to the real estate joint ventures listed, we hold an interest in one insignificant unconsolidated real estate joint venture.
Consolidated VIEs’ balance sheet information
We, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our financial
statements. These existing joint ventures provide significant equity capital to fund a portion of our future construction spending, and our
joint venture partners may also contribute equity into these entities for financing-related activities.
The table below aggregates the balance sheet information of our consolidated VIEs (in thousands):
June 30, 2025 | December 31, 2024 | |||
Investments in real estate | $7,773,223 | $8,917,718 | ||
Cash and cash equivalents | 258,718 | 335,223 | ||
Other assets | 811,124 | 777,033 | ||
Total assets | $8,843,065 | $10,029,974 | ||
Secured note payable | $153,500 | $149,321 | ||
Other liabilities | 475,757 | 626,460 | ||
Total liabilities | 629,257 | 775,781 | ||
Redeemable noncontrolling interests | — | 10,360 | ||
Alexandria Real Estate Equities, Inc.’s share of equity | 3,659,652 | 4,754,386 | ||
Noncontrolling interests’ share of equity | 4,554,156 | 4,489,447 | ||
Total liabilities and equity | $8,843,065 | $10,029,974 |
In determining whether to aggregate the balance sheet information of consolidated VIEs, we considered the similarity of each
VIE, including the primary purpose of these entities to own, manage, operate, and lease real estate properties owned by the VIEs, and
the similar nature of our involvement in each VIE as a managing member. Due to the similarity of the characteristics, we present the
balance sheet information of these entities on an aggregated basis. None of our consolidated VIEs’ assets have restrictions that limit
their use to settle specific obligations of the VIE. There are no creditors or other partners of our consolidated VIEs that have recourse to
our general credit, and our maximum exposure to our consolidated VIEs is limited to our variable interests in each VIE, except for our
99 Coolidge Avenue real estate joint venture in which the VIE’s secured construction loan is guaranteed by us. Refer to Note 10 –
“Secured and unsecured senior debt” to our unaudited consolidated financial statements for additional information.
Unconsolidated real estate joint ventures
Our maximum exposure to our unconsolidated VIEs is limited to our investment in each VIE, except for our 1450 Research
Boulevard and 101 West Dickman Street unconsolidated real estate joint ventures in which we guarantee up to $6.7 million of the
outstanding balance related to each VIE’s secured loan. Our investments in unconsolidated real estate joint ventures, accounted for
under the equity method and classified in investments in unconsolidated real estate joint ventures in our consolidated balance sheets,
consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands):
Property | June 30, 2025 | December 31, 2024 | ||
1655 and 1725 Third Street | ||||
1450 Research Boulevard | ||||
101 West Dickman Street | ||||
Other | 1,543 | 10,357 | ||
$40,234 | $39,873 | |||
Below are key terms of unconsolidated real estate joint ventures’ secured loans as of June 30, 2025 (dollars in thousands):
Interest Rate(1) | At 100% | Our Share | ||||||||||||
Unconsolidated Joint Venture | Maturity Date | Stated Rate | Aggregate Commitment | Debt Balance(2) | ||||||||||
101 West Dickman Street | 11/10/26 | SOFR+1.95% | (3) | 6.34% | $26,750 | $19,081 | 58.4% | |||||||
1450 Research Boulevard | 12/10/26 | SOFR+1.95% | (3) | 6.40% | 13,000 | 8,965 | 73.2% | |||||||
1655 and 1725 Third Street(4) | 2/10/35 | 6.37% | 6.44% | 500,000 | 496,709 | 10.0% | ||||||||
$539,750 | $524,755 | |||||||||||||
(1)Includes interest expense and amortization of loan fees.
(2)Represents outstanding principal, net of unamortized deferred financing costs, as of June 30, 2025.
(3)This loan is subject to a fixed SOFR floor of 0.75%.
(4)During the three months ended March 31, 2025, the unconsolidated real estate joint venture refinanced $500 million of its $600 million existing fixed-rate debt with a new
secured note payable maturing in 2035. The remaining debt balance of approximately $100 million was repaid through contributions from the unconsolidated joint
venture partners, including our share of $10.8 million.