Battery-Maker A123 Systems Buys Converted Lab Space For Steep Discount
A lab project in Burlington sold at a 52% discount to a battery-maker that has survived past political controversy.
Lithium-ion battery manufacturer A123 Systems acquired a 115K SF lab conversion at 10 Corporate Drive for almost $20M from The Gutierrez Co., according to public records. The Gutierrez Co. bought the property for $42M in 2021.
A123 Systems is currently located at BXP's 200 West St. in Waltham. The company shares the 272K SF building with Translate Bio. The manufacturer also has a facility in Novi, Michigan.
The battery-maker is perhaps most well-known for a $249M loan it received in 2009 from the federal government through a program designed to jumpstart the U.S. clean energy economy. The program was funded as part of the stimulus package signed into law that year by President Barack Obama.
With the funding and additional state and local incentives, A123 Systems opened three manufacturing plants in Michigan slated to support 3,000 jobs.
However, A123 filed for bankruptcy in 2012, which gave Republican lawmakers ammunition to criticize Obama and the grant and loan program leading up to the 2012 presidential election.
Chinese auto parts manufacturer Wanxiang Group successfully bid in 2013 to acquire the automotive parts of the company, with Navitas Systems LLC buying the defense-related parts of the portfolio. Now an LLC operating under Wanxiang, A123 focuses more broadly on various battery-related energy storage solutions.
In 2025, A123 appointed JLL as its real estate adviser for the development of a third planned facility in the U.S.
A123 Systems and The Gutierrez Co. didn't respond to Bisnow's request for comment.
The Gutierrez Co. converted the property to lab space at a time when such space was in high demand and office buildings were not. Excess office space has become prime ground for lab conversions.
Since then, however, the lab market has fizzled, and vacancy has climbed in the Boston area. With a glut of new lab space, tenants have become more selective, and conversion projects have become less desirable for traditional lab tenants.
Traditional lab space is increasingly being filled by tenants in tough tech, advanced manufacturing and clean tech.
The Gutierrez Co. has developed over 11.7M SF of real estate since 1978, including lab, industrial and residential space, according to its website. The company also has a property management arm, which manages over 2.2M SF of real estate investment.
