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Tishman Speyer landed a huge construction financing deal for the first phase of the Harvard Enterprise Research Campus in Allston.
The developer announced Friday afternoon it secured a $750M financing package led by Otera Capital, a Montreal-based institutional lender.
Tishman said this marks the largest reported deal in the U.S. this year. CGA Capital told Bisnow post-publication that it closed a larger deal in March, the previously unreported $892M loan for construction of Sherwin Williams' headquarters in Cleveland.
Construction for the first phase of the Harvard project is slated to begin next week, and the buildings are scheduled to open in late 2025 and early 2026. The first phase will total 900K SF across two lab buildings, a 343-unit apartment building and a hotel.
“With financing now in place, we are set to realize a collective vision for the ERC as an inclusive community driven by innovation and human connection,” Tishman Speyer CEO Rob Speyer said in a release. “Together, we are creating a destination within Allston that will inspire local residents, families and visitors along with students, researchers and entrepreneurs.”
Harvard chose Tishman as its developer for the project in 2019. The firm unveiled plans for the campus a year later, followed by many meetings with neighbors, the planning board and the design committee to hone in on the real needs of the area.
Last year, the university reached a deal with the Allston neighborhood to add more affordable housing to the development. This deal helped to move the project forward with the Boston Planning & Development Agency, the Boston Globe reported.
Tishman and the university increased the proportion of affordable units it would set aside from 20% to 25% of the 345 units, bringing the total number to 86. This is higher than the citywide minimum of 13% and the proposed increase to 20% that the city is hoping to push forward. The affordable apartments will be set aside for families making 30% to 100% of the area median income.
Breakthrough Properties, a joint venture between Tishman and Bellco Capital, will lead the development, leasing and operation of the 440K SF of lab and office space.
The research campus is next to the university's business school and its Harvard Science and Engineering Complex. The campus will also include ground-floor retail and open space.
UPDATE, JUNE 26, 1:45 P.M. ET: This story has been updated to include information on a larger, previously unreported financing deal that closed this year in Cleveland.
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