King Street Properties, Brookfield and Mugar Enterprises have secured $585 million in financing for Allston LabWorks, a mixed-use project the joint venture is developing in the Allston neighborhood of Boston. The partners relied on the JLL Capital Markets group to arrange the sizeable construction loan for the approximately 580,900-square-foot, life science-centric development.
Allston LabWorks will be erected at 250, 280 and 305 Western Ave. on a prime site that encompasses roughly 4 acres adjacent to the sprawling Allston campus of Harvard University. The joint venture paid approximately $181.6 million for the property, which includes several parcels and existing structures, in March 2022, according to Suffolk County records.
The half-billion-dollar construction financing deal for Allston LabWorks came in the form of a four-year, floating-rate loan that JLL Capital Markets placed through an institutional debt fund. Despite the precarious economic environment in the U.S., more than a few lenders were eager to craft a deal for Allston LabWorks.
“There was strong interest from the lending community due to the sponsorship expertise, as well as the strong location and life science market fundamentals in Boston,” JLL Capital Markets’ Greg LaBine, managing director, and Amy Lousararian, director, told Commercial Property Executive in a joint statement. LaBine and Lousararian led the team that represented the joint venture in the transaction.
Live, research, play
Allston LabWorks will feature something that Boston, which continues to hold the distinction of being the leading life sciences hub in the U.S., can’t seem to get enough of, which, with a vacancy rate of just 1.4 percent in the second quarter of 2022, is lab space, according to a CBRE report. The project will encompass 534,000 square feet of lab space, adding much-needed accommodations to the Allston/Brighton/Longwood neighborhood, where the total lab space was just over 2.7 million square feet in the second quarter of 2022 and the vacancy rate stood at 0 percent, according to the CBRE report.
Allston LabWorks will have a substantial impact on the Allston neighborhood, adding a 24/7 element to the atmosphere with its offerings. Beyond the lab space, the project will feature 20,000 square feet of ground-level retail space, a 12,000-square-foot plaza and a 5,000-square-foot, landscaped open space. Additionally, the development will boast 35 multifamily units, 26 percent of which will be designated affordable.
King Street, Brookfield and Mugar expect to deliver the first lab space for occupancy at Allston LabWorks in the fourth quarter of 2024.