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PASADENA, CA-A new $235 million stock sale by locally based Alexandria Real Estate Equities and financial results from San Diego’s Biomed Realty show that the market for biotech space is holding its own. Underwriters of the recent Alexandria offering of four million shares of common stock fully exercised their over-allotment option to purchase an additional 600,000 shares of the stock, Pasadena-based Alexandria reported recently, which brought the total net proceeds of the stock offering to approximately $235 million, after payment of underwriting discounts and commissions.

In the case of Biomed Realty, the San Diego-based REIT recently reported that total revenue and rental revenue for the third quarter both increased in comparison to those figures for the third quarter of last year. Although net income was down, FFO increased slightly on a year-to-year basis.

Despite the still-sluggish flow of capital generally in the commercial real estate realm, Biomed chairman and CEO Alan D. Gold noted that the third quarter “was positive for the life science industry,” with capital availability from follow-on equity offerings and partnership transactions continuing at “a very robust pace.” During the quarter, Biomed delivered a build-to-suit development of an approximately 230,000-square-foot corporate headquarters and research facility at the Landmark at Eastview campus in Tarrytown, NY for Regeneron Pharmaceuticals Inc. Development in the biomed and medical office sectors contrasts with the near-standstill in construction of general office space.

Biomed says in its latest quarterly report with the SEC that the company’s capacity to raise debt and equity capital “has contributed to our successful growth strategy.” However, the company points out in the report, “Over the past 12 months, we have, as have REITs in general, focused on deleveraging and preserving capital.” The company, which repaid approximately $44 million of mortgage debt before its scheduled maturity and thereby lowered its aggregate borrowing cost, expects to be able to continue to raise debt capital and also expects that “such debt will carry significantly higher interest rates and lower advance rates measured on a ratio of loan-to-value.”

Alexandria also reported on capital availability, announcing the closing of a new $120 million 10-year fixed rate secured financing with a life insurance company. The proceeds of the loan will initially be used to reduce outstanding indebtedness on the company’s unsecured line of credit. The collateral for the loan consists of six properties.

Also as part of its capital plan, Alexandria identified four properties for sale totaling approximately 269,000 square feet, including several properties that are under negotiations for sale. The total estimated sales prices for the properties, which will be sold primarily to life science users with anticipated closings over the next several quarters, will be approximately $50 million. The $50 million figure includes three properties that have already been sold this year.

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