King Street Properties Acquires $112M, 2-Building Lab Project
- Jul 09, 2014
King Street Properties has plans for a two-building, 284,200-square-foot laboratory redevelopment project in Cambridge, Mass., the leading life sciences hub in the country, and a new financing deal is helping the developer bring the goal to fruition.
With the assistance of commercial real estate and capital markets services provider HFF, King Street has secured financing totaling $89 million from Cornerstone Real Estate Advisers for the $112 million acquisition and repositioning of the vacant office/lab facilities.
In a $54.5 million deal, King Street took 87 and 200 Cambridge Park Dr., located in the Alewife section of Cambridge, off the hands of owner-occupier Pfizer, which is consolidating at a new facility in Cambridge’s Kendall square neighborhood. As part of the move, the pharmaceutical giant also sold its property at 620 Memorial Drive to MIT for $30.5 million during the second quarter.
The lending community responded favorably to the opportunity to finance King Street’s endeavor. “There was significant interest from the bridge lending community on this transaction and we received a number of proposals,” Greg LaBine, managing director at HFF, told Commercial Property Executive. “We have financed many lab facilities in Greater Boston and certainly there is a greater interest in properties that are in Cambridge or along the route to the corridor into Lexington, Mass.
Cornerstone, attracted by the assets’ high quality and coveted location, won the bid and provided a financing package consisting of a $22 million floating-rate loan for the 62,500-square-foot 87 Cambridge Park, and a $67 million floating-rate loan for 200 Cambridge Park, a 221,700-square-foot structure.
Now that money is in hand, King Street can look forward to renovating and repositioning 87 and 200 Cambridge Park. The company has tapped commercial real estate services firm Cushman & Wakefield to spearhead leasing at both buildings.