Activity in the Seaport remains red-hot as a prominent developer has received approval for a coveted mixed-use development on a 1.1-acre plot.

The Massachusetts Port Authority has approved a $123M ground lease with Lincoln Property Co. to develop a 730K SF lab, office and retail project in the South Boston Waterfront, it announced Thursday.

“This proposal also helps the Authority address our current economic challenges by providing a significant upfront payment coupled with long-term financial upside,” Massport CEO Lisa Wieland said in a statement.

Dallas-based LPC agreed to pay $50M to the agency upfront after it asked bidders to help it with a downturn in revenues from Logan Airport amid the coronavirus pandemic, The Boston Globe reported.

The plan pledges 730K SF of commercial space and 120K SF of outdoor space, according to Massport, which said LPC's plan best integrates the MBTA Silver Line bus steps away from the parcel.

“Our plans will transform this underutilized parcel into purpose-built lab and office space to support the region’s thriving life sciences and innovation economy,” Lincoln Property Co. Vice President Scott Brown said in a statement.

Massport saw a competitive bidding process with seven developers responding to the request for proposals in November 2019. Parcel H is adjacent to 601 Congress, where life sciences leader BioMed Realty Trust paid $362M to assume the 95-year lease on the 382K SF property.

The deal is the latest in a string of activity in the neighborhood, including Alexandria Real Estate Equities' $168M land purchase in November, Jamestown and Related Beal’s December joint venture at the Innovation and Design Building, and Marcus Partners' $25M December purchase of the former Au Bon Pain corporate office.

Massport's latest approval adds to the more than 9M SF of lab space permitted for construction in the next few years, according to an LPC Q4 2020 market report.

Massport owns approximately 400 acres in South Boston and issues ground leases for private developers, including at 601 Congress and the Seaport Boston World Trade Center.