MIT Shows Confidence in Hometown Deal

CAMBRIDGE, MA-MIT Real Estate is confirming the organization has bought into several properties owned here by Alexandria Real Estate Equities, with the REIT striking ground leases bearing a total value of approximately $30 million. According to MIT real estate associate director John McQuaid, the initiative is expected to provide a financial boost and steady income stream for the institution while at the same time allowing for reinvestment into the local economy.

“MIT is a big supporter of what is going on in Cambridge,” McQuaid tells GlobeSt.com. “It is a market we understand and it is one we have a lot of faith in.” The ground leases have an initial term of 50 years, and carry a 25-year extension option.

First reported earlier today by GlobeSt.com, the series of four transactions came after extended discussions between the two sides. It underscores a close relationship forged last year when Alexandria paid $600 million for a 90% stake in Technology Square, McQuaid explains, with MIT previously acquiring that seven-building, 1.2-million-sf complex in the core East Cambridge submarket.