Organ Transplant Firm Leases 500K SF Somerville Tower For New HQ
A company that specializes in transporting vital organs has committed to a landmark relocation deal that could help resuscitate the struggling lab market of a Boston suburb.
Andover-based TransMedics Group signed a 498K SF lease for 188 Assembly Park Drive at BioMed Realty's Assembly Innovation Park in Somerville, the company announced Monday morning.
The 12-story building, the first phase of BioMed's 1.5M SF lab and office campus adjacent to Assembly Row, will serve as the company's global headquarters and manufacturing hub.
The Blackstone-owned developer broke ground on Assembly Innovation Park in January 2022 and received $514M in construction financing for the project. Construction on subsequent phases hasn't been announced as the region's life sciences market has slumped.
TransMedics plans to relocate to the property on or before January 2028. It acquired an adjacent parcel in the life sciences complex from BioMed, purchasing 5 Middlesex Ave. on Jan. 9 for $15M, according to public deed records. The company also acquired a portion of the complex's parking garage.
The Middlesex Avenue property was once envisioned as the second phase of BioMed's Assembly Innovation Park. The four-story building is the former home of the Lincoln Technical Institute and the Assembly Sports Club.
TransMedics Senior Vice President Nick Corcoran told Bisnow on Monday the company is focused on its fit-out of 188 Assembly Park Drive, but the Middlesex Avenue property will be part of future expansion plans.
The company has been in talks to move to Somerville for some time, with state and local officials approving eight-figure tax incentives to jumpstart the deal.
In October, the Somerville City Council approved an $18M tax break package for the company to move into the space, and the state followed with a matching proposal through the Massachusetts Life Sciences Center, The Boston Globe reported.
In its release, TransMedics said MLSC proposed a tax incentive of up to $30K per net new permanent full-time job created between 2026 and 2031.
The company expects to create as many as 600 new jobs in the next five years at the complex, in addition to the roughly 300 employees expected to move from its Andover HQ at Spear Street Capital's 200 Minuteman Road.
The lease is a major win for BioMed and submarkets such as Somerville in the "urban ring" of Boston, which also includes Allston, Brighton and Fenway. Developers launched speculative projects in those areas as labs in Cambridge were at capacity during the pandemic-era life sciences boom, only to be caught out when the market turned starting in 2022.
Roughly 55% of the 11.7M SF of dedicated life sciences real estate in those markets was vacant at the end of the third quarter, according to Cushman & Wakefield.
