BioMed, Prudential JV Gets $245M Construction Loan for Cambridge Project
- Feb 20, 2008
A joint venture between BioMed Realty Trust Inc. and Prudential Real Estate Investors (PREI) has entered into a $245 million construction loan with Wachovia Bank, National Association and other lenders. The proceeds will repay a portion of the joint venture’s $550 million secured acquisition and interim loan facility with KeyBank National Association. The new loan will also fund the remaining construction work on a 300,000-square-foot life sciences building at 650 East Kendell Street in Cambridge, Mass. The interest rate on the construction loan will float with LIBOR plus 150 basis points and will mature in August of 2010. The joint venture also extended the term of its KeyBank facility until April of next year. BioMed and PREI formed the joint venture in April of 2007 to acquire a 600,000-square-foot life sciences portfolio from Lyme Timber Co. for $507 million. The joint venture tapped the KeyBank facility for $427 million to help pay for the portfolio. A commingled PREI fund paid 80 percent of remainder of the purchase price, while BioMed covered the rest. San Diego-based BioMed provides real estate to the life sciences industry. Tenants include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other organizations involved in life science industry. Headquartered in Parsippany, N.J., PREI is the real estate investment management arm of Prudential Financial Inc. As of last September, the company managed $40.7 billion of gross assets on behalf of more than 400 clients.