Image courtesy of Square Mile Capital

The new owners of a Burlington office building received $87 million to convert the property into 175,000 square feet of life science space.

GI Partners acquired 3 Burlington Woods in February for $58.1 million, and is seeking to tap into Burlington’s rapidly-expanding lab and biomanufacturing cluster.

Square Mile Capital originated the construction loan for the project. The New York investment firm recently provided $192.5 million in construction financing for the 100 Chestnut lab development in Somerville.

The Burlington project, scheduled for completion by the end of 2023, will add lab infrastructure and a pre-built lab component, developers announced today.

“We expect to be well received by the market upon completion of conversion due to Burlington’s low vacancy, high net absorption, and investors’ continued investment in the life sciences space,” Square Mile Capital Principal David Greenburg said in a statement.

The potential to convert underutilized office buildings into R&D space has attracted a series of developers to the Route 128 north submarket in recent years.

In September, Lexington-based Fractyl Health signed on as the first tenant at GenLabs, a 320,000-square-foot lab conversion at 3 Van de Graaff Drive by Jumbo Capital and Apollo Global Management.

Burlington-based Gutierrez Cos. is converting a 110,000-square-foot office building at 10 Corporate Drive office building into lab space.