Blackstone Acquires Boston Towers for Life Sciences Conversion
The buildings’ large, flexible floorplates, floor-to-ceiling windows and energy-efficient mechanical systems will allow BioMed to convert them to life science uses.
Two more assets are being repositioned for life science uses.
Funds managed by Blackstone Real Estate Partners are buying two adjacent office towers in Boston from CIM Group and Nordblom Company.
The towers, located at 1000 Washington St. and 321 Harrison Ave., will be operated by BioMed Realty. The Boston towers’ large, flexible floorplates, floor-to-ceiling windows and energy-efficient mechanical systems will allow BioMed to convert them to life science uses. The towers’ amenities include outdoor areas and a rooftop terrace, a state-of-the-art tenant fitness center, outdoor café, bike storage, covered parking, and front desk services in a shared two-story lobby.
In 2017, CIM Group and Nordblom Company repositioned 1000 Washington St., an 11-story, 242,000-square-foot office building, into Class A office space. The two companies added eight additional floors above an adjacent three-story parking garage at 321 Harrison Ave. to create a new 11-story, 233,000 square-foot office building. The towers sit in Boston’s South End, which has walkable amenities and convenient access to the Mass Pike (I-90) and various Amtrak, MBTA and bus stations.
“CIM repositioned and developed 1000 Washington and 321 Harrison to create modern Class A office spaces that would appeal to the growing life science sector. By attracting a leading life science owner and operator, CIM has fulfilled its vision to enhance the local economy and create new jobs,” said Avi Shemesh, co-founder and principal, CIM Group, in a prepared statement.
Blackstone has been busy in the life sciences sector recently. In December, Blackstone Property Partners Life Sciences struck a deal to acquire a 2.3 million square foot portfolio of lab office buildings from a Brookfield Asset Management real estate fund for $3.45 billion.
In October, Blackstone Real Estate Partners VIII and co-investors agreed to sell BioMed Realty for $14.6 billion to a group led by existing BioMed investors.
BioMed is the largest private owner of life science office buildings in the US with an 11.3 million square foot portfolio concentrated in Boston/Cambridge, San Francisco, San Diego, Seattle and Cambridge UK. In connection with the recapitalization, existing BioMed investors were offered the option to exit for cash or reinvest their proceeds from the sale. The investment will generate $6.5 billion of cumulative profits for BREP VIII and BioMed co-investors.