Senior Housing Properties to Buy 2 Biotech Buildings in Boston for $1.1B
- Feb 11, 2014
Real estate investment trust Senior Housing Properties Trust has agreed to buy two 15-story biotech medical office buildings, which include a connected three-level, 740-stall, below-grade parking garage, located in Boston’s premier Seaport District for a purchase price of $1.1 billion.
The buildings developed and owned by The Fallon Co. L.L.C. contain biomedical research facilities, corporate office space, structured parking and street-level retail space. The buildings also contain 1.6 million total gross square feet, 96 percent of which is occupied by Vertex Pharmaceuticals Inc., a global biopharma company in a triple-net lease for 15 years for a lab and office space, which the REIT views as a strong tenant.
“Vertex is well positioned for long-term growth and has a very strong balance sheet,” said David Hegarty, president & COO of Senior Housing Properties Trust during a conference call Tuesday morning.
There is 1.1 million square feet of rentable space in the buildings. The rent starts at $62.50 per square foot. The property also contains 50,00o square feet of street-level retail space that will include amenities such as banking, dining and daycare. There is also 390,000 square feet of subterranean parking for 740 vehicles on three levels.
The two properties, at 11 Fan Pier Boulevard and 50 Northern Ave., were constructed in accord with LEED Gold standards with high-end finishes, and are connected by a glass sky bridge on the fifth and sixth levels.
The REIT, which mainly owns independent and assisted living communities, nursing homes, wellness centers and medical office buildings, views the Seaport District as “Boston’s fastest growing submarket and one of real estate’s top investment opportunities,” according to Hegarty. “The Seaport district is one of the most attractive places to live, work, and dine.”
Jefferies L.L.C. served as financial advisor to Senior Housing Properties Trust for the acquisition and also acted as Joint Lead Arranger for the $800 million committed financing in support of the transaction.
The acquisition is expected to close in the first half of 2014.