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Alexandria Sells Andover Office Building At Fraction Of 2022 Price

138 River Road in Andover
Alexandria Sold A Three-Story Office Building In Andover For A Quarter Of What It Bought It For In 2022.

Life sciences giant Alexandria Real Estate Equities has sold another property at a loss as it sells underperforming assets and focuses on its bigger campuses.

Alexandria sold a three-story office building at 138 River Road in Andover for $3.9M to Lawrence-based Energy North Group, according to public records. The sale price represents just more than a quarter of the $14.3M the life sciences REIT bought it for two years ago, the Boston Business Journal first reported.

Alexandria didn't respond to Bisnow's request for comment on the sale.

The River Road property was part of a bigger $341M investment in Andover, which included the purchase of two other campuses. Alexandria bought the properties in separate deals from Atlantic Management and Spear Street Capital.

Alexandria has suffered similar losses in the last year as it has begun to unload assets from its Greater Boston portfolio.

In June, the company sold a three-building, 510K SF office campus in Newton for $117.5M, half of what the REIT bought the property for in 2020. In December, Alexandria sold two industrial buildings in South Boston for half of the $168.5M it bought them for in 2020.

Nationally, Alexandria plans to continue to sell life sciences assets in 2024 as it focuses on its bigger campuses and the revenues they generate, which accounted for 75% of its earnings in 2023. Last year, the REIT sold $1.4B in assets and took on $461M in impairment charges, Alexandria Chairman Joel Marcus said during its fourth-quarter earnings call in January.

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