Construction of Alexandria Real Estate Equities’ 421 Park Drive (left) in Boston’s Fenway wrapped up in June, representing the last speculative lab development in Greater Boston without a tenant. Image courtesy of Alexandria Real Estate Equities
Alexandria Real Estate Equities has agreed to sell its 421 Park Drive lab tower in Boston’s Fenway before completion, in a cost-cutting move that could save $136 million.
The 13-story, 339,668 square-foot lab tower is in core-and-shell condition. A 268,000 square-foot portion of the building was sold to Boston Children’s Hospital in 2023 as a condominium.
The latest transaction is expected to close in the fourth quarter. The buyer is an institutional investor, Alexandria disclosed in its third quarter financial report, and is expected to take on the $136 million in remaining interior lab improvements.
The nation’s largest lab landlord is canceling planned office-to-lab conversions to cut expenses, while recruiting tech and advanced technology tenants to reduce vacancy.
The Alexandria Center for Life Science – Fenway comprises 401 and 421 Park Drive and 201 Brookline Ave. It totals 1.5 million square feet and is 74 percent occupied, according to the quarterly report.
Alexandria previously announced it would drop a planned lab conversion for the neighboring 401 Park Drive property, formerly known as the Landmark Center.
Alexandria also estimates that it will save another $220 million through reduced construction spending at the Arsenal on the Charles complex in Watertown. The 339,020 square foot property currently is just under 67,000 square feet leased, and Alexandria executives previously announced they were negotiating with traditional tech and advanced manufacturing companies to fill vacancy.
Another 100,684 square feet is under negotiation at the Arsenal on the Charles, Alexandria revealed in its quarterly report.
Google and video game publisher CD Projekt Red recently signed leases at the Arsenal on the Charles for 35,000 and 55,000 square feet, respectively.
