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A Kendall Square building that houses an MIT "tough tech" spinout has been sold in one of the largest commercial real estate deals of 2024 so far.
BioMed Realty acquired 730-750 Main St. in Cambridge, a two-building complex, from MIT for $361.5M, according to public deed records. The building is home to the MIT spinout The Engine, a venture capital and investment firm targeting robotics and climate tech companies that try to solve issues in human health, climate change, and advanced systems and infrastructure.
“MIT’s real estate group has a long history of collaborating with others and investing in the physical environment to advance innovation in Kendall Square and help contribute to a vibrant and inclusive community,” Patrick Rowe, senior vice president overseeing MIT’s real estate group, said in a statement. “Finding a partner also committed to long-term occupants pursuing transformational technologies was critical.”
A BioMed spokesperson didn't respond to Bisnow's request for comment.
The deal allows BioMed to control the complex under a master lease agreement that expires in 2099, while MIT will continue to own the land, the Boston Business Journal reported. The Blackstone-owned life sciences real estate firm took out a $181M loan from an affiliate of the American International Goup Inc. and Fidelity & Guaranty Life Insurance Co. to fund the acquisition.
The Engine firm expanded its footprint and moved into a 155K SF office in September 2022 at 750 Main St. The move came after MIT renovated the property, which was formerly home to the Polaroid Corp.
The property was one of three investment opportunities in Cambridge that were marketed over the summer.
The other two properties are being marketed by Alexandria Real Estate Equities. The first building is 215 First St., a 370K SF building headquartered by Sarepta Therapeutics that is expected to sell for $160M, according to Green Street's Real Estate Alert.
The second is 150 Second St., a 123K SF building that sits vacant after sole tenant Foundation Medicine left to anchor WS Development's 400 Summer St. property in the Seaport. The property is expected to sell for $120M.
Alexandria also extended its ground lease with MIT in July for 1.2M SF Technology Square in Cambridge for $270M. The campus is home to Novartis AG, GlaxoSmithKline PLC, MassGeneral Brigham and MIT.
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