JLL arranges $140M financing for life science development in Somerville’s Boynton Yards
The project will kick off the creation of a dynamic urban neighborhood for the robust demand from life science and technology companies in the area
BOSTON, August 22, 2019 – JLL announced today that it has arranged $140 million in financing for 101 South Street, a 289,000-square-foot, Class A office and lab development in the Boynton Yards area of Somerville, Massachusetts. The project is under construction and will represent the largest state-of-the-art lab development in Somerville’s growing life science market.
JLL worked on behalf of the borrower, a joint venture between DLJ Real Estate Capital Partners and Leggat McCall Properties, to secure first mortgage construction financing through Bank OZK.
Located one mile from Kendall Square/MIT, the epicenter of the biotech/life science industry, 101 South Street will consist of nine stories of life science space and approximately 13,500 square feet of ground floor retail. The building is scheduled to deliver simultaneously with the planned 2021 opening of the new MBTA Green Line station at Union Square, which is less than a five-minute walk from the project and provides direct access to downtown Boston. 101 South Street is the first phase of the borrower’s planned mixed-use development for the Union Square/Boynton Yards area of Somerville. The overall neighborhood plan is envisioned to be an 18-hour, work-live-play neighborhood offering more than one million square feet of commercial, residential and retail uses in addition to significant public green space. Given its proximity to East Cambridge, Boston and the established Somerville neighborhood, Boynton Yards will create a dynamic urban neighborhood to meet the robust demand from life science and technology companies with the desire to be in Somerville.
JLL’s Capital Markets team representing the borrower was led by Senior Directors Brett Paulsrud and Jennifer Keller.
“We were able to work closely with the development team to secure a capitalization structure that met their objectives,” said Paulsrud. “This development will dramatically transform the landscape of the already popular Somerville neighborhood and it will be very exciting to watch this best-in-class partnership create a new destination for surrounding residents and businesses alike.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
About DLJ Real Estate Capital Partners
DLJ RECP is an independent, vertically-integrated real estate investment management firm targeting investment and development opportunities in the dynamic neighborhoods of major US cities. DLJ RECP was founded in 1995 and has offices in New York, Boston, Los Angeles, and Hong Kong. To date, the company has executed over 200 real estate investments with a total transaction value of over $16 billion, representing over $4.5 billion in invested capital. Across DLJ RECP’s 20+ year history, the firm has built a strong track record of success through ground-up development and intensive redevelopment real estate projects. DLJ RECP’s projects include large scale residential, office, and retail developments, as well as historic redevelopment and preservation projects all built to an institutional standard.
About Leggett McCall Properties
Founded in 1965, Leggat McCall Properties is a leading real estate owner, developer and service provider to corporate, educational, healthcare and other clients in the Greater Boston Area. Over the past 10 years, LMP has had a leadership role in over 42 million square feet of project development, representing more than $10 billion of investment. The company has executed on 15 projects over $200 million, 50 over $50 million, and has also developed or acquired approximately $3 billion in assets as principals, including research and life science, mixed-use, office, and residential properties. The firm has a dominant presence in the rapidly growing life sciences, higher education and healthcare industries and serves many of the area’s top universities, healthcare systems and biotech companies, including Novartis Institutes for BioMedical Research, Draper, Harvard University, Massachusetts Institute of Technology, and Brigham & Women’s Hospital.