BioMed Realty Trust has agreed to acquire Prudential Real Estate Investors’ (PREI) 80 percent interest in the Rogers Street properties in Cambridge, which includes 301 Binney St., 320 Bent St., the Kendall Crossing Apartments and the Binney Street Garage.
BioMed previously acquired a 20 percent interest in the properties in April, 2007, concurrent with the joint venture entered into between BioMed and PREI, according to a statement.
Excluding closing costs, BioMed is expected to pay PREI $308 million to fully acquire PREI’s interest in the Rogers Street properties. BioMed will also contribute approximately $35 million to repay its portion of the secured acquisition and interim loan allocated to the Rogers Street properties.
The research and lab facilities at 301 Binney and 320 Bent are 74 percent occupied and 79 percent occupied, respectively. Tenants at the properties include Ironwood Pharmaceuticals, The Borad Institute and Merck & Co.
The seven-story Kendall Crossing Apartments complex contains 37 apartments, which are 100 percent leased, and 4,645 square feet of retail space on the first floor – also 100 percent leased. The Binney Street Garage has approximately 500 spaces for use by tenants of 301 Binney, 320 Bent and the Kendall Crossing Apartments, according to a statement.
"We are very excited to take full ownership of the Rogers Street properties in the center of the most vibrant life science market in the world today. This acquisition of PREI’s interests in these properties represents another step forward in our trusted, mutually beneficial relationship over the past four and a half years. Our combined life science property expertise and understanding of the specialized requirements of our tenants have created unique environments at 301 Binney Street and 320 Bent Street that cultivate life science discoveries and create growing value for our shareholders," BioMed Chairman and CEO Alan D. Gold said in a statement. "We look forward to continuing to operate and manage the properties for our valued existing tenants and attracting more world-class life science organizations to Cambridge and Rogers Street."
BioMed said it will use cash on hand and draw on its unsecured line of credit to fund the $343 million total cash required for the transaction. According to a statement, BioMed will continue to own a 20 percent interest in a joint venture with PREI that owns the 650 Kendall St. property and the Kendall Square Garage, also in Cambridge.
