Jamestown announced that it has sold a 50% stake in Boston’s Innovation and Design Building (The IDB) to Related Fund Management, marking the city’s second largest commercial real estate transaction of the year.
Jamestown and Related Fund Management have formed a new joint venture to grow the building’s tenant base with new lab and office spaces. Jamestown and Related Beal expect to begin construction on the new lab and office spaces in 2021.
“When Jamestown first acquired the building, we saw the potential for a new creative hub in Boston’s Seaport District,” said Michael Phillips, President of Jamestown. “Now, seven years later, The IDB is home to a long list of cutting-edge companies, makers, and thinkers. We look forward to our new partnership with Related Beal and leveraging our shared experiences to embark on the third phase of the property’s transformation, further expanding the ecosystem of interconnected businesses within The IDB.”
“Related Fund Management is excited to reach this agreement with Jamestown to partner on Boston’s historic Innovation and Design Building,” said Patrick Sweeney, Managing Director of Related Fund Management. “Related Beal and Jamestown have a longstanding history in the Eastern Seaport neighborhood’s life science sector and are committed to serving the strong demand we continue to see in this submarket. We look forward to collaborating on this next phase of the property, with an emphasis on enhancing and adapting the building to attract more lab tenants.”
The Innovation and Design Building is a 1.35 million square foot mixed-use complex located in the Innovation District in Boston’s Seaport neighborhood. The eight-story structure was constructed in 1918 and originally served as a waterside storehouse for the South Boston Army Base.
Jamestown purchased The IDB in 2013 and has since invested more than $200 million in the revitalization of the building which now anchors Boston’s Innovation District. The building serves as a business hub for a number of creative companies including Reebok, Autodesk, life science tenants Ginkgo Bioworks and Living Proof, and the Boston Design Center.
Jamestoen said the new phase of The IDB will bring new and growing companies to Boston, helping to jump start the economy as the city recovers from COVID-19.
“Ginkgo Bioworks has benefited tremendously from having offices & labs at the Innovation and Design Building,” said Ginkgo Bioworks Co-founder Barry Canton. “The environment has enabled us to grow our business, collaborate with other like-minded tenants, and create a great culture for our employees. Jamestown has done an exceptional job creating a place where people want to spend the day.”
Newmark Knight Frank represented Jamestown in the marketing and sale of the 50% ownership stake to Related Beal.