BXP Leaves West Coast Life Science Market

January 30, 2026

Investment News Office San Francisco More West

The firm obtained $268 million in sale proceeds.

BXP has exited the laboratory market in the West as part of its portfolio optimization strategy.

The firm sold the ownership stakes it held in six buildings part of Gateway Commons, a life science campus in South San Francisco, Calif., as first reported by Bisnow. Proceeds amounted to some $268 million.

BXP had shared the properties’ ownership with Alexandria Real Estate Equities, which also sold its stake in those assets.

Healthpeak Properties acquired the Gateway Commons portfolio and one other office building from Alexandria for a total purchase price of $600 million. All the assets combined total 1.4 million square feet.

BXP’s traded assets are at 555, 601, 611, 651, 681 and 751 Gateway Blvd., public records show. The portfolio was roughly 60 percent leased at the time of sale.

The Gateway Commons campus is about 10 miles south of downtown San Francisco, with close access to U.S. Route 101 and interstates 280 and 380. San Francisco International Airport is roughly 3 miles from the property.

The joint venture between BXP, then known as Boston Properties, and Alexandria formed in January 2020, when BXP agreed to contribute three of its Gateway Commons assets and Alexandria brought three of its own properties.

BXP’s recent moves

The San Francisco transaction is part of BXP’s goal to sell off $1.9 billion worth of assets in order to reduce debt and fund new office and multifamily construction.

The firm is currently building a 46-story office tower at 343 Madison Ave. in Manhattan. Earlier in January, investment and insurance firm Starr signed a 275,000-square-foot, 20-year lease at the building, which is expected to open in late 2029.

In December 2025, BXP sold 140 Kendrick St., a 409,000-square-foot office campus in the Boston suburb of Needham, Mass. Lincoln Property Co. and Cross Ocean Partners paid $132 million to acquire the property.

Earlier in December, the firm acquired 2100 M St. NW, a nearly 300,000-square-foot office building in Washington, D.C., and announced plans for its redevelopment. Law firm Sidley Austin will anchor the new facility.