RMR-Managed JV Nabs $1B for Boston Life Science Campus

August 8, 2025

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A pharmaceutical company renewed its lease at the 1.1 million-square-foot property through 2044.

A joint venture managed by The RMR Group has secured a $1 billion refinancing loan for a 1.1 million-square-foot life science and office campus in Boston that serves as the headquarters of Vertex Pharmaceuticals. The venture includes private institutional investors and Diversified Healthcare Trust, which owns a 10 percent equity interest.

A consortium of Morgan Stanley, Bank of Montreal, Goldman Sachs and J.P. Morgan issued the five-year, interest-only, fixed-rate note with an interest of 5.59 percent.

The venture will utilize proceeds to retire an existing $620 million CMBS loan originated by Morgan Stanley in 2016, with a maturity date set in 2026 according to Yardi Research Data. Additional funds will go toward leasing reserves and cash repatriation.

This refinancing deal landed just one year after Vertex Pharmaceuticals inked an early lease renewal, agreeing to occupy the property until 2044. Its initial agreement was the largest such commitment in Boston at the time.

The campus debuted in 2013, constructed on a build-to-suit basis for the pharma company. A year later, Diversified Healthcare Trust, formerly Senior Housing Properties Trust, paid $1.1 billion for the asset and has since partnered with various investors. The Fallon Co. sold the property.

Vertex Pharmaceuticals’ headquarters consists of two 18-story buildings encompassing 556,105 and 526,312 square feet. The LEED Gold-certified high-rise buildings feature floorplates ranging between 28,500 and 41,000 square feet, as well as floor-to-ceiling windows and 60,000 square feet of retail space.

Located at 50 Northern Ave. and 11 Fan Pier Blvd., the duo is inside Boston’s Seaport district, where Fallon built a 3 million-square-foot master-planned development across nine city blocks.

Dechert provided legal advice for the lenders, while Skadden, Arps, Slate, Meagher & Flom served as counselors for the owners.

Metro Boston’s life science market has seen better days

Greater Boston’s life science market continues grappling with uncertainty, while tenant demand adjusts amid mounting headwinds. Total lab leasing activity clocked in at 426,000 square feet during the second quarter, marking the second lowest volume since June 2020 and resulting in 91,500 square feet of negative absorption, according to a CBRE report.

Yet, lab space demand rose 30 percent compared to the first three months of 2025, settling at 2.4 million square feet during the second quarter, the report shows. Still, this surge was attributed to upcoming lease expirations rather than organic growth.

The lab space vacancy rate settled at 25.8 percent, up nearly 10 percent year-over-year, and likely to continue to rise as 790,000 square feet of product is slated for delivery fully vacant by year’s end, CBRE’s report reveals.

Investor appetite remained largely subdued, with just two lab space deals closing during the second quarter, the same source shows. MetLife Real Estate Investment sold one of the assets for $33 million, a sharp decline from the $103 million it paid to acquire the property at 4 Burlington Woods Drive in 2022.