BioMed Realty Gets Back 313,000 Square Feet Of Valuable Real Estate In Cambridge Innovation District
Company Announces Termination of Vertex Leases in Cambridgeport, Including Termination Fee of $14 Million
SAN DIEGO, March 2, 2015 /PRNewswire/ -- BioMed Realty Trust, Inc. (NYSE: BMR) today announced it has recaptured approximately 313,000 square feet of space in the most dynamic and valuable life science real estate market in the world through the termination of Vertex Pharmaceuticals' leases on three properties in Cambridge, Massachusetts effective February 28, 2015. BioMed Realty will receive a $14 million termination fee from Vertex and will immediately begin to reposition the properties to meet the growing demand for lab space from new life science companies in this core innovation district.
"This deal is a win-win for Vertex and BioMed Realty since Vertex can be relieved of these lease obligations moving forward, and we have great space to meet the growing life science real estate demand in Cambridge," said Bill Kane, Senior Vice President for BioMed Realty. "Tenants requiring 30,000 to 100,000 square feet in Cambridge are struggling to find available lab space, and we see venture capital and IPO activity driving aggregate demand for 1.3 million square feet of new lab space over the next three years in Cambridge. These three properties are well-positioned to allow us to capitalize on this demand at attractive rents."
Two laboratory and office properties at 200 Sydney and 40 Erie aggregate 293,000 square feet and were leased by Vertex through December 2015. An additional 21,000 square feet was leased by Vertex at 21 Erie through May 2017. BioMed Realty initially plans to improve the properties to update the entrances and lobbies, introduce indoor/outdoor collaboration spaces, add modern fitness centers with showers and deliver food service through new cafeteria or hired food trucks. The company will start work immediately, and space should be available for delivery beginning in September 2015.
BioMed Realty owns over three million square feet of laboratory and office space in the Boston/Cambridge market. This includes 450 Kendall Street, a new 60,000 square foot laboratory and office building located in the heart of Kendall Square that is expected to go into service in the second quarter of this year. Also, Baxter Healthcare will be moving into 206,000 square feet at BioMed Realty's 650 E. Kendall Street property later this year. In addition, the company's relationship with Vertex will continue through its leases for 291,000 square feet at 675 W. Kendall Street in Kendall Square through April 2018 and 81,000 square feet in the Torrey Pines submarket of San Diego through December 2018.
About BioMed Realty Trust
BioMed Realty, with its trusted expertise and valuable relationships, delivers optimal real estate solutions for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty owns or has interests in properties comprising approximately 18.0 million rentable square feet. Additional information is available at www.biomedrealty.com. Follow us on Twitter @biomedrealty.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: risks and uncertainties affecting property development and construction, including redevelopment of the 200 Sidney, 40 Erie and 21 Erie properties in Cambridge, Massachusetts; and general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants' financial condition, and competition from other developers, owners and operators of real estate). For a further list and description of such risks and uncertainties, see the reports filed by the company with the Securities and Exchange Commission, including the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE BioMed Realty Trust, Inc.
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