This Week's Boston Deal Sheet: Healey Scraps Labs In Hurley Redevelopment
Prompted by the slump in life sciences leasing, Gov. Maura Healey has pivoted plans for a $1B redevelopment project, scrapping its lab component.
The administration will move forward with a housing-focused request for proposals for the Charles F. Hurley Building, pivoting from the original mixed-use plans that included a lab building, according to a press release. The new project will also include the redevelopment of the adjacent Erich Lindemann Building, which wasn't a part of the original plan.
"Stable housing can make all the difference in someone’s life, and that is especially true when we talk about the impact it has on mental health," Secretary of Housing and Livable Communities Ed Augustus said in a statement. "This project will create a vibrant livable community and provide housing and services to those who need it most."
The original $1B plan, awarded to Leggat McCall in 2022 by then-Gov. Charlie Baker, consisted of office space, a lab tower and a 200-unit residential building. The redevelopment was aimed at transforming the underutilized state-owned property into a mixed-use neighborhood.
Leggat was initially selected because of its diversity, equity and inclusion plan for the project. The developer said it plans to rebid for the RFP, the Boston Business Journal reported.
The 347K SF Hurley Building opened its doors in 1971 and is home to the Department of Unemployment Assistance, MassHire/Department of Career Services and other state offices.
SALES
Venture capital firm Shannon Life Sciences bought a newly constructed lab building in Watertown for $56M, according to public land records. The firm plans to make the 74K SF Elm Street Labs building its new U.S. headquarters, with leftover space to be used for startups in its portfolio, the BBJ reported. The sellers were Boston-based The Triad Group and LabCentral founder Johannes Fruehauf. The developer will still manage the property and oversee the build-out of Shannon's space.
LEASES
Boston Pickle Club signed a 28K SF lease at 77 Accord Park Drive in Norwell, set to be its second location in Greater Boston. The lease comes after the pickleball business opened its Hyde Park location in April. Cushman & Wakefield's Joe Pearce represented Boston Pickle Club, and Lincoln Property Co.'s Ellison Patten represented owner AEP Realty Trust in the deal. The company plans to open the facility near the end of 2024.
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Alexandria Real Estate Equities agreed to pay $270M to extend its ground lease at Technology Square in Cambridge, the BBJ reported. The lease has been extended for the 1.2M SF Kendall Square campus through the end of 2088. The payments will be made in two equal installments in late 2024 and early 2025. The life sciences giant bought the property from the Massachusetts Institute of Technology for $600M in 2006 and leased space to tenants including Novartis AG, GlaxoSmithKline PLC and Mass General Brigham.
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German software company SAP LeanIX plans to sublease 25K SF at 60 State St. in downtown Boston and move out of its 14K SF office at 1 Kingsbury Ave. in Watertown, the BBJ reported. The tech company is subleasing the space from LinkSquares. It plans to move into the seventh floor of the Starwood Capital Group-owned building this fall.
FINANCING
N6 Properties secured $16M in financing for its 49-unit residential project at 375 Cummins Highway in Roslindale. The developer acquired the construction loan from North Shore Bank, Banker & Tradesman reported. FinanceBoston’s Brian Rooney sourced the construction loan with North Shore Bank.
PERSONNEL
Logistics Property Co. appointed Mark Crawford as senior vice president of acquisitions in its east region. Crawford will be based in Boston and be responsible for sourcing and closing on industrial investments across the eastern portion of the U.S. Crawford's experience includes working as head of acquisitions at Duke Realty and chief investment officer at Chicago-based CRG, according to his LinkedIn.
CONSTRUCTION AND DEVELOPMENT
Trammell Crow Residential broke ground on its 220-unit Alexan Worcester project, which it expects to complete in early 2026. The project consists of two five-story multifamily buildings with apartments ranging from studios to three-bedroom units. The project is the newest in a string of groundbreakings in the area from TCR, including Alexan Waltham, Alexan Peabody and Alexan Chelmsford. The company has more than 1,600 units in various stages of development in the region.
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Franklin Holdings Group's Jiahao Chi submitted plans to convert a 14K SF office and nightclub building into 18 apartments through the city's tax incentive program. The project would include a vertical expansion that would keep part of the property commercial, B&T reported. The proposal includes four units set aside for households making 60% of the area median income. Chi acquired the property in 2017 for $7M. The project is estimated to cost $4M.
