Investment firm GI Partners has acquired a Life Sciences lab & data center in Boston, Massachusetts.
The company last week announced that it has bought 451 D Street from Related Fund Management for an undisclosed fee. Related Fund Management will retain a minority interest in the ownership of the property, and Related Beal will continue to serve as property manager.
Originally built in 1910 and retrofitted as recently as 2018, the nine-story facility offers a total of 479,000 sq ft (44,500 sqm). Current and former tenants of the site include Alion Science and Technology, RDK Engineers, JP Morgan Chase, the Boston Herald, Inozyme Pharma, Joyn Bio, DermBiont, and Sensei Biotherapeutics.
John Sheputis, managing director at GI Partners and Head of Acquisitions for GI Partners Real Estate, said, “We are thrilled to acquire a critical piece of what we believe to be one of the most important life sciences ecosystems in the country, alongside our partners at Related Fund Management and Related Beal. The Seaport has become a bona fide life sciences innovation hub and 451 D exemplifies our focus on serving the needs of small and medium-sized lab tenants through Class A reusable buildouts. This is an attractive asset that has experienced exceptional leasing velocity through careful execution and delivering best-in-class service and amenities. The integration of this mission-critical asset into our diversified life sciences portfolio is expected to deliver superior long-term risk-adjusted returns.”
Prior to merging with Related, Beal Cos. originally acquired 451 D alongside Rockpoint Group in 2006 for $40.5 million. The two companies sold the property to Shorenstein Properties for $115 million around 2012, with Shorenstein selling it to another joint venture — GE Asset Management, CV Properties, and Meritage Properties — in 2014 for $169.5 million. In 2016 State Street Corp. bought GE Asset Management, and took over the building's ownership. Related Beal then acquired it again from State Street in 2018 for $276 million and announced plans to convert some of the building’s vacant office space to laboratory space.
“Related is excited to partner with GI Partners on 451 D, a first-class life sciences asset that has seen great success in attracting innovative companies of all sizes,” said Patrick Sweeney, managing director of Related Fund Management. “We continue to see tremendous value in this neighborhood as a hub for the biotech sector in Boston and look forward to welcoming even more global leaders to this building.”
Eastdil Secured represented the seller on this transaction and placed debt financing for the new ownership group.
GI Partners, which founded Digital Realty in 2004, has invested in a number of data center and life science properties. The company launched the GI Real Estate Essential Tech + Science Fund (ETS Fund) last year to acquire data center properties, life sciences assets, and always-on R&D facilities within the office and industrial sectors.