BioMed Realty recaptures valuable properties in Cambridge innovation district

Mar 2 2015

BioMed Realty Trust, Inc. (NYSE: BMR) today announced it has recaptured approximately 313,000 square feet of space in the most dynamic and valuable life science real estate market in the world through the termination of Vertex Pharmaceuticals' leases on three properties in Cambridge, Massachusetts effective February 28, 2015. BioMed Realty will receive a $14 million termination fee from Vertex and will immediately begin to reposition the properties to meet the growing demand for lab space from new life science companies in this core innovation district.

"This deal is a win-win for Vertex and BioMed Realty since Vertex can be relieved of these lease obligations moving forward, and we have great space to meet the growing life science real estate demand in Cambridge," said Bill Kane, Senior Vice President for BioMed Realty. "Tenants requiring 30,000 to 100,000 square feet in Cambridge are struggling to find available lab space, and we see venture capital and IPO activity driving aggregate demand for 1.3 million square feet of new lab space over the next three years in Cambridge. These three properties are well-positioned to allow us to capitalize on this demand at attractive rents."

Two laboratory and office properties at 200 Sydney and 40 Erie aggregate 293,000 square feet and were leased by Vertex through December 2015. An additional 21,000 square feet was leased by Vertex at 21 Erie through May 2017. BioMed Realty initially plans to improve the properties to update the entrances and lobbies, introduce indoor/outdoor collaboration spaces, add modern fitness centers with showers and deliver food service through new cafeteria or hired food trucks. The company will start work immediately, and space should be available for delivery beginning in September 2015.

BioMed Realty owns over three million square feet of laboratory and office space in the Boston/Cambridge market. This includes 450 Kendall Street, a new 60,000 square foot laboratory and office building located in the heart of Kendall Square that is expected to go into service in the second quarter of this year. Also, Baxter Healthcare will be moving into 206,000 square feet at BioMed Realty's 650 E. Kendall Street property later this year. In addition, the company's relationship with Vertex will continue through its leases for 291,000 square feet at 675 W. Kendall Street in Kendall Square through April 2018 and 81,000 square feet in the Torrey Pines submarket of San Diego through December 2018.