Boston Properties to Acquire Maryland Biotech Campus for $117M
Boston Properties (BXP) (BXP) is set to acquire the Shady Grove Bio+Tech Campus, a seven-building, 435,000-square-foot office park in Rockville, Md., for $116.5 million, from Lantian, the company announced.
The deal is expected to close in the third quarter of this year.
The 31-acre property, located at 9600 Gudelsky Drive, is situated within the Shady Grove life sciences cluster, home to a host of companies in the biotechnology sector.
“Suburban Maryland benefits from existing dynamics that provide a strong foundation for growth in the life science industry,” Pete Otteni, BXP’s senior vice president and co-head of the Washington, D.C., region, said in a prepared release. “Growing demand, combined with limited supply, make Montgomery County, Maryland, and this cluster in particular, an attractive opportunity for BXP to expand its life sciences presence.”
BXP plans to convert the office buildings into lab space, following the rising interest among building owners in converting assets to lab, research and biotech space throughout the D.C. region.
“We look forward to using our life sciences expertise and real estate skills to transform the property into a leading life sciences campus in the region,” Otteni said.
Three vacant buildings will be the first to be transformed once the closing of the sale is complete. The remaining four buildings will be converted as they become vacant.
The Shady Grove Bio+Tech Campus is located within a half mile of I-270, offering convenient access to MD-355.
Cushman & Wakefield (CWK)’s most recent national life sciences report, released in June, shows the D.C. region has one of the U.S.’s largest concentrations of life sciences workers in both government-related, as well as venture capital and publicly funded institutions.
To date, BXP owns more than 3 million square feet of properties, and has nearly 1 million square feet of lab development and redevelopment projects under construction and scheduled to deliver in the next three years.
CBRE‘s Tommy Cleaver, Dan Grimes and Stuart Kenny represented Lantian in the sale,