CAMBRIDGE, MA—HCP Inc, an Irvine, CA-based REIT, has signed a definitive agreement to acquire life science property 35 Cambridge Park Drive here for $332.5 million.
The 224,000-square-foot LEED Gold lab building is being purchased from a partnership of The Davis Companies and Invesco Real Estate.
The deal increases HCP’s Cambridge holdings to in excess of 1 million square feet. The firm recently acquired 87 Cambridge Park Drive and further development opportunity at 101 Cambridge Park Drive. Combined, HCP has created up to 440,000 square feet of contiguous space across a modern campus. The deal for 35 Cambridge Park Drive is expected to close in December.
In February, HCP announced it had acquired 87 Cambridge Park Drive, a 64,000 square foot life science facility in Cambridge for $71 million and development rights on an adjacent site, 101 Cambridge Park Drive, for total consideration of up to $27 million.
35 Cambridge Park Drive is 100% leased to five life science tenants composed of both established large-cap and emerging biopharmaceutical companies, with a weighted average lease term of more than 10 years and weighted average lease escalators of 3.0%. The year one cash and GAAP capitalization rates are 4.8% and 5.7%, respectively.
“With the acquisition of 35 Cambridge Park Drive, we’re pleased to report that in less than two years we have expanded our presence in the Boston life science market to more than 1.3 million square feet and at a very compelling blended yield,” says Scott Brinker, EVP and chief investment officer of HCP. “Class A life science real estate continues to experience unprecedented demand and the cluster strategy we have employed, combined with our mix of stabilized and development properties, will allow our tenants to grow within our portfolio.”
The state-of-the-art building offers more than 10,000 square feet of common amenity space, including a grand lobby with dedicated collaboration spaces, a full-service restaurant, a fitness center, lockers and bike storage, and abundant green space and outdoor seating. The property is located directly across the street from the MBTA Alewife Red Line station and bus terminal.