July 21, 2016
Alexandria Real Estate Equities has struck an agreement with DivcoWest to buy the 644,771-square-foot One Kendall Square in Cambridge, MA. The buyer will pay $725 million for the campus, which includes life science and technology tenants, as well as restaurants. One Kendall Square, just off Binney Street in the Kendall/MIT technology and life-science cluster, is 98.5% occupied, though approximately 55% of the leases expire by 2019.
The acquisition also includes assumption of a secured note, payable with an outstanding balance of $203 million. The note matures in early 2024 and has a 4.8% interest rate.
DivcoWest, in the meantime, will continue planning out NorthPoint. San Francisco-based DivcoWest acquired the 42-acre development area in East Cambridge in August 2015 for $291 million.