BOSTON — Alexandria Real Estate Equities Inc. (NYSE: ARE) has sold 268,000 rentable square feet within 421 Park Drive, a 660,034-square-foot life sciences development to be built in Boston. An affiliate of Boston Children’s Hospital was the buyer.
Upon completion, 421 Park Drive will be part of the larger Alexandria Center for Life Science-Fenway mega campus, which will total more than 2 million square feet at full build-out. The campus, developed in partnership with Samuels & Associates, boasts numerous amenities, proximity to both Cambridge and the Longwood Medical Area, and convenient transportation access.
Alexandria will develop and operate 421 Park Drive, which will feature open space, direct connections to the Massachusetts Bay Transportation Authority (MBTA) Fenway station, bicycle and pedestrian paths, and retail space on the ground floor.
The price of the portion sold to Boston Children’s Hospital is approximately $155 million, along with development fees to be earned by Alexandria over the next three years. Boston Children’s Hospital will continue to fund its pro rata share of the costs to develop 421 Park Drive.
Vertical construction is scheduled to begin later this year and to be substantially completed in 2026. The transaction with Boston Children’s Hospital results in 48.5 percent of the building being leased, including retail space.
Alexandria is an owner, operator and developer of life sciences, agricultural technology and advanced technology campuses in locations such as greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and the North Carolina Research Triangle. The company’s stock price opened at $115.58 per share on Wednesday, June 28, down from $144.50 per share one year ago.
In fiscal year 2022 for the National Institutes of Health (NIH), Boston Children’s Hospital ranked No. 1 in NIH funding among all U.S. children’s hospitals.
— Kristin Harlow