JLL secures $585M financing for mixed-use development in Boston
Allston LabWorks will comprise life sciences, retail and multi-housing space at 250, 280 and 305 Western Ave. in Boston’s Allston neighborhood
BOSTON, August 1, 2022 – JLL’s Capital Markets group announced today that it has arranged $585 million in construction financing for a mixed-use project consisting of 580,905 square feet of life sciences, retail and multi-housing space in Boston, Massachusetts.
JLL worked on behalf of the borrower, a joint venture between King Street Properties, Brookfield and Mugar Enterprises, to secure the four-year, floating-rate loan through an institutional debt fund.
“We are pleased JLL was able to secure financing for this important site and we look forward to our new lending relationship,” said Mike Diminico, Managing Director, King Street. “The fact that we were able to move quickly on this loan in today’s market conditions speaks to the level of interest and confidence in Allston LabWorks. We are extremely proud of this transformative project and look forward to breaking ground as soon as possible.”
Once completed, Allston LabWorks will consist of 534,000 square feet of lab space; 20,000 square feet of retail space; 35 multi-housing units, 26% of which will be affordable; as well as a 12,000-square-foot public plaza with an additional 5,000-square-foot landscaped open space and 668 garage parking spaces.
The project, which is located on 4.27 acres at 250, 280 and 305 Western Ave., is adjacent to Harvard University’s 350-acre Allston campus, which is home to the newly opened John A. Paulson School of Engineering and Applied Sciences. Given its proximity to Harvard’s investment in the neighborhood, the property is well-positioned to capture the neighborhood’s growing life science demand. Over the last two decades, ongoing public and private investments have transformed the neighborhood into a vibrant, sought-after area with thriving commercial and academic demand drivers nearby.
Allston LabWorks will benefit from its position in the Greater Boston Lab market, which is home to 19 of the 20 largest biotech and pharmaceutical companies. In addition, the market receives 30% of the total U.S. life sciences funding and life sciences job growth is outpacing overall job growth four to one.
The JLL Capital Markets team representing the borrower was led by Managing Director Greg LaBine and Director Amy Lousararian.
“This is just the first of many deals that will combine the institutional capital base of Brookfield with the exceptional development capabilities and successful track record of the King Street team,” said LaBine. “The lender recognized these attributes early in the process and then delivered on the closing as stated in the midst of a volatile economic climate. This project will be good for the neighborhood, the tenants and the capital markets participants and the JLL team was excited to play a role.”
The JLL Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The team’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About King Street Properties, LLC
King Street is a private real estate investment management firm focused on serving the complex needs of science-based companies and institutions. Their experienced professionals combine big-company experience with a hands-on entrepreneurial approach to execute its tightly defined mission. King Street owns and operates 2.8 million square feet of stabilized assets with an additional 4.5 million square feet under development.
Brookfield is a premier global alternative asset manager with $725 billion of assets under management across renewable power & transition, infrastructure, private equity, real estate, and credit & insurance solutions. With a history as an owner and operator that dates back more than 100 years, Brookfield owns and operates long-life assets and high-quality businesses that help form backbone of the global economy. Utilizing its global reach, access to large-scale capital and operational expertise, Brookfield offers a range of alternative investment products to institutional investors, sovereign wealth funds and individual investors around the world.
About Mugar Enterprises
Mugar Enterprises, Inc. (MEI), is a privately held, family firm with over 50 years of real estate development and investment expertise. MEI pursues both commercial and philanthropic endeavors. MEI’s diverse commercial real estate portfolio includes shopping centers, an assisted living complex, commercial office space and industrial buildings. In addition to its real estate holdings, MEI also manages a diverse equity and bond portfolio, retail and entertainment businesses, and other closely held investments. Over the years, the Mugar family has maintained a strong commitment to community service and philanthropic activities.