421 Park Drive. Picture courtesy of Alexandria Actual Property Equities
Alexandria Actual Property Equities has bought two workplace and life science belongings totaling 778,000 sq. ft within the Boston space. Riverside Heart, a 510,000-square-foot workplace campus in Newton, Mass., and a 268,000-square-foot portion of 421 Park Drive, a 660,034-square-foot life science growth in Boston, traded for a mixed $272.5 million.
Boston Kids’s Hospital acquired a part of the Boston undertaking, coming on-line within the 2 million-square-foot Alexandria Heart for Life Science – Fenway campus, for an preliminary $155 million. Moreover, the client will sponsor the development of the ability with funds proportional to its 48.5 p.c possession stake. Alexandria will stay the asset’s operator and property supervisor.
In a separate transaction, a three way partnership between Barings and Greatland Realty Companions acquired the three-building Riverside Heart property in Newton. The partnership’s funding was $117.5 million, public information present, half the value Alexandria paid in 2020 for the Class A asset.
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The 2 offers got here on the heels of a number of related strikes. Earlier this month, Alexandria, in a partnership with Nuveen, bought 70 p.c curiosity in 9625 Towne Centre Drive, a 163,648-square-foot facility in San Diego that was purpose-built for Takeda Pharmaceutical Co.
In April, the REIT transferred a portion of its curiosity in an ongoing undertaking at 15 Necco St. in Boston to Mori Belief Co. The deal was, on the time, the biggest single-building transaction of its sort this yr.
Inside Alexandria’s life science campus in Fenway
Already beneath building, the 421 Park Drive undertaking is anticipated to go vertical later this yr, with completion anticipated in 2026. Upon supply, the 13-story life science constructing will comprise greater than 1 / 4 of the area on the Alexandria Heart for Life Science – Fenway campus, developed by the vendor in partnership with Samuels & Associates.
Plans for Alexandria Heart for Life Science – Fenway emerged in 2021, when Alexandria bought the complete lot, which incorporates the historic Landmark Heart, for $1.5 billion. The campus would be the developer’s newest life science element of its Higher Boston cluster that additionally contains Minuteman Park, a 1.3 million-square-foot property in Andover, Mass.
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At full build-out, Alexandria Heart for Life Science – Fenway will embody 4 buildings, together with the Landmark Heart and one other 550,000-square-foot facility, totaling greater than 2 million sq. ft of laboratory and workplace area. Facilities will embody open courtyards, 50,000 sq. ft of ground-floor retail area and direct connections to the MBTA Fenway station. The campus is located in its namesake district, three blocks away from Fenway Park.
Riverside Heart’s stats
Riverside Heart. Picture courtesy of CommercialEdge
Positioned at 275 Grove St., Riverside Heart got here on-line in 2000, in accordance with CommercialEdge info. Alexandria picked up the property in 2020 for $235 million, with the intention of changing it totally to life science workplace and laboratory area, as reported in Banker & Tradesman. These plans had been deserted earlier this yr, motivated partially by lagging workplace fundamentals, stagnating demand and rising building prices, the corporate reported in an April earnings name.
Riverside Heart sits on 11 acres, with its three buildings related by a central atrium. The buildings’ tenants are within the monetary companies, well being and know-how sectors. Facilities embody 6,000 sq. ft of retail area, alongside eating companies curated by Kendall Kitchen, in accordance with CommercialEdge info.
The property is instantly adjoining to the Riverside MBTA station, and in between on-ramps to the interstates 90 and 95, 10 miles west of downtown Boston and inside 8 miles of Cambridge, Mass. The campus is throughout the road from Lasell College and a couple of miles south of Brandeis College.
