Uber's Show-Stopping Move

Last month, we were the first to report about Alexandria Real Estate's upcoming purchase of Block 26/27 in Mission Bay. Yesterday, the future of the site was revealed. Alexandria entered into a JV with Uber to acquire and develop those two parcels for Uber's new worldwide HQ. The parcels will support 423k SF of Class-A space. We are told it was a "double-secret negotiation" that no one knew about, even some of the sales brokers involved on the land deal. Alexandria is Mission Bay's biggest landlord (its CEO Joel Marcus, above).

Given the structure, it's a great deal for all involved, including the seller, sources tell us. "Not often there is a win-win for all sides, but this is one." Uber needs the extra space because it's already outgrown its current HQ at 1455 Market (above). It's also a rare move for a landlord like ARE to enter into a JV on an urban campus with a huge, growing tech company. The site at 1455 and 1515 Third streets is adjacent to where the new Golden State Warriors arena will rise.

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