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Alexandria Real Estate Equities sold three Kendall Square life science buildings to its archrival BioMed Realty for $250 million in a transaction between the nation’s two largest lab landlords.
Along with the 147,808-square-foot former Foundation Medicine-leased building at 150 Second St., the transaction includes 215 First St., which totals 366,000 square feet and includes the headquarters of Sarepta Therapeutics.
Foundation Medicine has relocated to Boston’s Seaport District at a new tower by WS Development.
Alexandria also assigned its lease at 11 Hurley St. to BioMed, according to a deed filed in Middlesex County. The 67,037-square-foot property is assessed at $39.8 million.
The nation’s largest lab landlord, Alexandria has been divesting properties in eastern Massachusetts and shelving expansion plans since 2022 as biotechs trimmed real estate footprints and lab vacancies steadily rose to historic highs.
This fall, it sold properties in Norwood and Andover for a combined $467 million to Moderna Pharmaceuticals and The Davis Cos., respectively.
Prior to 2024, Alexandria owned over 13 million square feet of life science properties in Greater Boston delivering nearly $821 million in annual rental revenues, as part of its 47.2 million-square-foot nationwide portfolio.
BioMed, meanwhile, has continued its growth strategy with the $361 million acquisition in September of another Kendall Square property. The 750 Main St. building is anchored by The Engine, a climate tech accelerator, and is owned by MIT which ground-leases the building to BioMed.
San Diego-based BioMed owns 5.2 million square feet of lab and office buildings in Greater Boston and 17 million square feet total in the U.S. and United Kingdom.
As of Sept. 30, lab availabilities in Kendall Square comprised 16.2 percent of the 16.8 million-square-foot submarket. East Cambridge has the regions’ highest asking rents of nearly $108 per square foot, according to CBRE.
