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Alexandria Signs Lease with Pinterest for 88 Bluxome Campus

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Alexandria Real Estate Equities, Inc. (ARE - Free Report) recently inked a major lease with social media website Pinterest, Inc. for 88 Bluxome Street redevelopment. Pinterest will serve as the anchor tenant for nearly 490,000 rentable square feet (RSF) at the campus.

This marks the first major lease signed at the project in support of the city’s Central SoMa Plan. Further, with this lease, the project is nearly 60% preleased.  

Specifically, the mixed-use development project spans nearly one million square feet of space and is located in the central SoMa neighborhood of San Francisco. The premier campus will offer a distinctive life-science and technology building along with dynamic ground-floor retail space.   

Moreover, it will include a community recreation center, an air rights parcel that has been deeded to the city for developing nearly 90 units of affordable housing space and a linear park along the recently improved Bluxome Street, among others.

Also, sufficient outdoor deck spaces throughout the building and a public activity space complement the neighborhood's Gene Friend Recreation Center.

Per management, the well-planned development will help the company address the needs of the SoMa submarket. Management believes that it will spur innovation and job growth in SoMa, thereby revitalizing the neighborhood. Additionally, it enhances Alexandria’s development pipeline of value-accretive projects.    

Notably, Alexandria has an active development and redevelopment pipeline with 3.9 million RSF of projects slated for delivery from 2019 through 2020. The delivery of these new Class A properties in AAA locations will likely boost the company’s operating performance.

Over the past three months, shares of this Zacks Rank #2 (Buy) company have rallied 29.2% compared with the industry’s gain of 18.2%.




Other Stocks to Consider

Investors can also consider other top-ranked stocks from the same space like Terreno Realty Corp. (TRNO - Free Report) , Cousins Properties Inc. (CUZ - Free Report) and Boston Properties, Inc. (BXP - Free Report) . All three stocks carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Terreno Realty’s funds from operations (FFO) per share estimates for first-quarter 2019 remained unchanged at $1.32 over the past month. Further, it has a long-term growth rate of 8.40%.

Cousins Properties’ Zacks Consensus Estimate for 2019 FFO per share has been revised 12.7% upward to 73 cents over the past month. Also, it has a long-term growth rate of 3.2%.

Boston Properties’ FFO per share estimate for the ongoing year has been revised marginally north to $6.92 in 30 days’ time. Additionally, it has a long-term growth rate of 6.20%.

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