Boston’s life sciences real estate market is going a bit green.
Newmark arranged a $514 million construction loan for Boston BioMed’s Assembly Innovation Park in Somerville, Massachusetts. The financing will cover the first phase of the project, a 12-story, 485,000 square-foot life sciences building.
The loan’s conditions don’t stop at interest and terms: The building must meet environmental sustainability standards, incorporating sustainable technologies such as rooftop solar panels
to ensure it will be LEED Gold- and WELL-certified.
Sprinkled with research universities like MIT and Harvard, the Boston area has been a magnet for life sciences development, everything from pharmaceuticals to biotech to cosmetics, in recent years. Newmark says it has secured more than $4 billion for such projects since December 2020.
“Life science has been a major driver of financing activity across Greater Boston in the past 18 months,” Newmark’s David Douvadjian Sr., who arranged the deal along with Timothy O’Donnell, Brian Butler, David Douvadjian Jr. and Conor Reenstierna.
Assembly Innovation Park, developed by Blackstone portfolio company BioMed on the site of a former Ford plant, will add 970,000 square feet of life science space in the Boston suburb. Construction began in January, and developers expect Phase I to be completed in mid-2024.
While it’s being built on spec, BioMed says it’s confident it can find tenants. “We believe very much in the fundamentals of the industry, so we’re moving ahead,” BioMed Realty’s Colleen O’Connor told the Boston Business Journal.