$150M refinancing secured for Boston-area life sciences building

BOSTON, Sept 9, 2024 - JLL Capital Markets announced today that it arranged a $150 million refinancing for Bedford Labs, a 288,000-square-foot, newly converted, Class A life sciences facility in Bedford, Massachusetts.

JLL worked on behalf of the borrower, a joint venture between AEW Capital Management, Redgate, and Optimum Asset Management, to secure the loan from an affiliate of Apollo Global Management.

Recently repositioned from a single-tenant office building into a state-of-the-art life sciences/R&D facility, Bedford Labs is now one of the premier lab facilities in Boston's northern submarket. Bedford Labs is fully leased to Sarepta Therapeutics, a commercial-stage biopharmaceutical company that focuses on rare genetic diseases, under a long-term agreement. In addition to the existing building, the site also allows for an additional 300,000 square feet of development, which can accommodate further expansion needs of Sarepta and/or other market tenants.

Located on 52 acres at 100 Crosby Drive, the property is approximately 20 miles from downtown Boston and has convenient access to Route 3 and Interstate 95. Bedford has emerged as one of the region's fastest growing life sciences clusters and is home to leading life sciences tenants, including MilliporeSigma, Ultragenyx, ThermoFisher and Homology.

According to JLL's 2024 Life Sciences Property report it appears the cycle of softening lab demand has moderated and U.S. demand has increased since the fall of 2023, up 6.3% across the board in the first quarter of 2024. Most of this uptick in demand is concentrated in the top three markets, which includes Greater Boston.

The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Brett Paulsrud and Tom Sullivan and Director Mike Shepard.

"Although the life sciences market continues to face various challenges, debt capital remains available for top-tier borrowers with quality assets," stated Paulsrud "The AEW, Redgate and Optimum team has demonstrated their clear understanding of this niche market sector, which is exemplified by their positive track record at Bedford Labs."

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 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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