Blackstone Real Estate to Acquire Cambridge Lab Portfolio for $3.5B

Blackstone Property Partners Life Sciences (BPPLS) has announced plans to acquire a 2.3 million-square-foot lab office portfolio from a Brookfield Asset Management real estate fund for $3.45 billion. Approximately 90% of the portfolio is located in Cambridge.

With the closing of the transaction, which is scheduled for the first quarter of 2021, Blackstone would become the largest life science office owner in Cambridge. Cambridge is one of the fastest growing lab office submarkets in the country due to its proximity to world-leading academic institutions and the largest cluster of pharmaceutical companies in the U.S. The Cambridge portfolio is located in East Cambridge, directly adjacent to the Massachusetts Institute of Technology and is currently fully leased.

Eastdil Secured is serving as lead financial advisor to Brookfield in the transaction. Citigroup Global Markets Inc. also provided financial advisory services to Brookfield in connection with the transaction.

“This transaction illustrates Blackstone’s continued conviction in the life sciences space both broadly, and within real estate, investing in best-in-class assets located adjacent to top-tier research and education institutions,” said Nadeem Meghji, Head of Real Estate Americas. “We look forward to continuing to grow the platform with the help of BioMed Realty, our world-class life science office platform, with the goal of delivering value to our long-term investors.”

*Pictured above is an aerial photo of the Massachusetts Institute of Technology campus in Cambridge.

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