Alexandria Closes on Disposition of 282,523 SF in Gaithersburg, MD for $41.1M

Alexandria Technology Center

Alexandria Technology Center (Google Maps)

Alexandria Real Estate Equities has closed on the disposition of the assets it owned at 25/35/45 West Watkins Mill Road and 1201 Clopper Road in Suburban Washington, D.C., the REIT reported Thursday.

25/35/45 West Watkins Mill Road and 1201 Clopper Road are two buildings totaling 282,523 rentable square feet. 1201 Clopper Road in Gaithersburg totals 143,585 square feet. 25/35/45 West Watkins Mill Road in Gaithersburg totals 138,938 square feet.

The sales price was $41.4 million, or $147 per square foot. A land parcel was included in the asset trade.

25-35-45 Watkins Mill Rd

25-35-45 Watkins Mill Rd (Google Maps)

Although they are currently fully leased, the properties are expected to become 17 percent vacant in 2013, Alexandria said, with significant additional vacancies following in subsequent years. The unidentified buyer is expected to invest in a significant renovation program for these properties.

Alexandria completed the sale on February 1, 2013, and recognized a $0.1 million gain upon the closing of the transaction.

Alexandria said the properties met the classification for discontinued operations in January 2013 and were classified as operating properties as of December 31, 2012.