Biogen Consolidates In Cambridge In $592M Sale-Leaseback Deal With BXP
BXP has acquired a Kendall Square life sciences property from biotech giant Biogen in a $592M sale-leaseback deal.
The REIT announced in a press release Tuesday that Biogen signed a lease to continue to occupy the six-story, 217K SF building at 125 Broadway until April 2028.
The two firms are also planning to terminate Biogen's office lease at 300 Binney St., a six-story, 195K SF property that BXP developed in 2013. After laying off employees in the spring, Biogen listed the Binney Street space and another space in Weston on the sublease market.
BXP plans to convert the Binney Street office building into 240K SF of life sciences space. The REIT said it signed a 15-year lease for the space with "a prominent life sciences organization," and the Boston Business Journal reported that The Broad Institute of MIT and Harvard is the tenant.
The sale of 125 Broadway cuts the amount of property Biogen owns in Cambridge by close to half, the BBJ reported. Biogen said in a statement to the BBJ that the move was a response to the rise in hybrid work.
The property is near BXP's 2.2M SF Kendall Center portfolio in Kendall Square, which is a mixed-use portfolio consisting of 11 properties and 280 units.
BXP bought the property with cash and borrowings under its line of credit, according to the release. It is evaluating opportunities to own the property with one or more joint venture partners.
"BXP has been an integral member of the Cambridge community since the development of our first property in 1981, and we are pleased to continue to grow and evolve Kendall Center to meet the needs of the life sciences community," said Bryan Koop, Boston region executive vice president of BXP.
