Landlord Sues T2 Biosystems, Terminates Its 70K SF Lease In Boston Suburbs

A Billerica landlord is suing T2 Biosystems for damages resulting from the biotech company abandoning its lease.

Farley White sent a notice Jan. 17 that it was terminating the tenant's 70K SF lease at 290 Concord Road in Billerica because of its alleged failure to perform its obligations under the agreement, according to documents T2 filed with the Securities and Exchange Commission.

The landlord filed a complaint in Suffolk Superior Court seeking to recover damages arising from the alleged breach of contract. It also deducted T2's $1M security deposit for alleged damages, according to the SEC filing. 

"T2 knowingly and wrongfully engaged in a bad-faith campaign seeking to coerce Farley White to renegotiate the lease under the threat of non-performance, to convince the construction contractor to reallocate budgetary costs to Farley White that T2 knew were its obligations under the lease," the landlord's complaint says. 

T2 Biosystems entered into the 10-year lease in September 2021 for 70K SF of office, lab and manufacturing space as part of its plan to consolidate and expand operations in the state. T2's occupancy in the building was delayed because of disputes between the two parties around the cost to build out T2's space.

Farley White claimed the biotech company intentionally extended the process of the build-out as it tried to renegotiate costs before later abandoning the lease. It said this left the landlord with $2.1M in out-of-pocket expenses related to the lease.

The landlord also said in the complaint that T2 abandoned the lease because it was unable to meet its economic obligations due to its "declining business outlook and creditworthiness."

T2 argued in the SEC filing that Farley White was the one that breached its obligations under the lease. The biotech company went on to say it will still be able to meet its manufacturing needs with its operations in Lexington and Wilmington.