Blackstone Acquires Life Sciences Portfolio in Metro Boston for $3.4B
CAMBRIDGE, MASS. — Blackstone (NYSE: BX) has acquired a 2.3 million-square-foot life sciences portfolio in Cambridge, located across the Charles River from Boston, for approximately $3.4 billion. The seller was Brookfield Asset Management.
The majority of the properties in the portfolio are located in East Cambridge, adjacent to the Massachusetts Institute of Technology (MIT) campus, and are leased to investment-grade tenants with both traditional office and lab requirements.
Following the closing of the deal, which is scheduled for the first quarter of 2021, Blackstone will be the largest owner of life sciences space in Cambridge. Blackstone is acquiring the portfolio through BioMed Realty, its $20 billion subsidiary that launched in 2018 and is focused on life sciences properties.
“This transaction illustrates Blackstone’s continued conviction in the life sciences space, both broadly and within real estate, and in investing in best-in-class assets located adjacent to top-tier research and education institutions,” says Nadeem Meghji, head of real estate in the Americas for Blackstone.
Cambridge continues to be a hub for development and leasing of life sciences properties. In November, locally based developer King Street Properties partnered with California-based Healthpeak Properties to break ground on a $170 million life sciences facility that will be branded 101 Cambridgepark. A few days later, biotechnology firm Ginkgo Bioworks announced that it had signed a 38,759-square-foot lease at The Quad, a 510,000-square-foot campus under construction.
Deutsche Bank, Morgan Stanley and Wells Fargo are serving as financial advisors to Blackstone, and Simpson Thacher & Bartlett LLP is serving as the New York-based REIT’s legal advisor.
Eastdil Secured is serving as lead financial advisor to Brookfield, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor. Citigroup also provided financial advisory services to Brookfield in connection with the transaction.
Blackstone’s stock price opened at $64.30 per share on Monday, Dec. 14, up from $53.95 per share a year ago.
— Taylor Williams