A life science startup that recently received $72 million in venture funding is the first tenant to lease lab space at Watertown’s Arsenal Yards.

SQZ Biotech signed a 63,477-square-foot lease and will relocate later this year from 134 Coolidge Ave. in Watertown. SQZ specializes in therapies used to treat cancer and autoimmune diseases.

Boylston Properties, Wilder and JP Morgan are redeveloping the former Arsenal Mall property with new retail buildings, 200,000 square feet of office and lab-ready space, a movie theater, 150-room Hampton Inn & Suites and over 300 apartments.

Life science companies continue to migrate to East Watertown and Allston-Brighton for growth as an alternative to high-cost, low-vacancy Cambridge. Boylston Properties’ LINX complex in Watertown recently sold to Clarion Partners for nearly $158 million, or $852 per square foot, while Cresset Group sold an industrial-to-lab conversion at 65 Grove St. in Watertown to BioMed Realty for $62.5 million, or $521 per square foot.

Cushman & Wakefield’s Duncan Gratton and Elizabeth Donatoni represented ownership in the SQZ lease transaction, while Newmark Knight Frank’s Juliette Reiter and Mark Winters represented SQZ.