Harvest Properties Buys Palo Alto R&D Campus for $163 Million

Harvest Properties purchased a 24.5-acre research and development campus in Palo Alto for $163 million. The San Francisco-based firm acquired the property, located at 3825 and 3875 Fabian Way, from Alexandria Real Estate Equities.

Alexandria Real Estate Equities sold the asset at a 44 percent loss compared to its 2019 purchase price of $292 million. The price decline highlights a broader slump in the life sciences market, which has been impacted by rising vacancies, weak demand, and a reduction in federal funding.

Harvest Properties plans to retain the campus' primary tenant, Lanteris Space Systems. However, the firm is exploring the redevelopment of roughly half the property into townhomes and apartments. This strategy aligns with municipal mandates requiring Palo Alto to plan for 6,086 new housing units by 2031 under California state law.