Exclusive: Beacon Capital Lands $149M for Boston Life Science Building
The deal comes during a difficult life science market environment.
Beacon Capital Partners has secured a $149.2 million loan from Morgan Stanley Bank for the office building at 27 Drydock Ave. in Boston, according to Yardi Research Data. The current financing pays off a $150 million note issued by the same lender in 2020.
The 286,000-square-foot property, developed in the early decades of the 20th century, has a high concentration of life science tenants. Companies occupying space at the historic building include GoToKnow (which was acquired in May), Arcaea, Tomopath, MedChem Imaging and Ginkgo Bioworks.
In the face of market headwinds in the life sciences sector, Ginkgo Bioworks has been contracting its office footprint in recent quarters, including at 27 Drydock, where it put part of its headquarters space up for sublease last year.
A Boston Seaport office property
Beacon Capital acquired the Seaport District property in 2020 for about $261.9 million. The asset is subject to a 99 years unsubordinated net ground lease held by Economic Development and Industrial Corp., expiring in 2086.
The eight-story building has controlled access and surface parking. Its floorplates measure 37,000 square feet each, with certain features generally not found in newer buildings, such as 13-foot slab-to-slab ceiling heights that allow the entry of natural light.
The LEED Silver-certified property also counts as transit-oriented, with the MBTA Silver Line stopping directly in front of the building, connecting to South Station and Logan International Airport. In addition, 27 Drylock has a Walk Score of 91 (out of 100), which points to a high degree of neighborhood walkability.
Headwinds brisk for Boston bioscience space
The refi comes at a time of somewhat lower interest rates—led by the Federal Reserve’s rate cut in September—but also sustained headwinds for the life sciences sector, which has depressed demand for space in the previously hot Boston-area market, according to a CBRE report.
During the second quarter of 2025, the Boston life science market saw 91,500 square feet of negative absorption, the report shows. That was an improvement compared with the mass contraction in Q1 2025, when tenants put a net of 640,000 square feet back on the market. Even so, the Q2 numbers point to a persistent dearth of demand.
In the current economic climate, private bioscience firms are navigating a more cautious venture capital environment, while public bioscience companies are facing tough capital markets and investor concerns. In either case, the uncertainty is impacting real estate decisions, either inspiring hesitancy in leasing decisions or out-and-out contraction, CBRE noted.
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