HCP, Inc., a fully integrated real estate investment trust (REIT) that invests in real estate serving the healthcare industry in the United States, has signed a definitive agreement to acquire a 224,000 square foot life science property, LEED Gold® laboratory building located at 35 CambridgePark Drive for $332.5 million from The Davis Companies and Invesco Real Estate.
35 CambridgePark Drive, a trophy life science property, is located in the Cambridge submarket of Boston, Massachusetts, adjacent to HCP’s recently acquired property at 87 CambridgePark Drive and future development opportunity at 101 CambridgePark Drive. Combined, HCP has created up to 440,000 square feet of contiguous space across a modern campus.
35 CambridgePark Drive is 100% leased to five life science tenants composed of both established large-cap and emerging biopharmaceutical companies, with a weighted average lease term of over 10 years and weighted average lease escalators of 3.0%. The year one cash and GAAP capitalization rates are 4.8% and 5.7%, respectively.
“With the acquisition of 35 CambridgePark Drive, we’re pleased to report that in less than two years we have expanded our presence in the Boston life science market to more than 1.3 million square feet and at a very compelling blended yield,” said Scott Brinker, Executive Vice President and Chief Investment Officer of HCP.
“Class A life science real estate continues to experience unprecedented demand and the cluster strategy we have employed, combined with our mix of stabilized and development properties, will allow our tenants to grow within our portfolio,” he added.
The transaction is expected to close in December 2019.