3 days ago
Latest sign of lab space woes: Wellesley building auctions at big loss
Lab vacancy in Greater Boston hit 25.8 percent in the second quarter, a staggering increase from three years ago, when it was less than 2 percent, according to recent research from brokerage CBRE.
'The Greater Boston life sciences market continues to face uncertainty as persistent headwinds weigh heavily on tenant demand,' CBRE's report said. 'Tenants now have more lab and office opportunities to select from than ever before.'
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Some of the pressures weighing on real estate decisions include
The building had been owned by Boston-based developer Beacon Capital Partners, which operates
a 750,000-square-foot creative office and lab building, as well as several downtown office buildings (including the Globe's current home at 53 State St.).
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The firm acquired Wellesley Gateway North in fall 2021 for an undisclosed price, and said in a statement the property is a 'high-quality, well-located asset with many features that are attractive to a diverse range of tenants.'
An affiliate of the developer in May 2022 took out an $86.7 million mortgage on the 15.7-acre property from TIAA's real estate arm, according to Norfolk County property records. And since its acquisition, Beacon converted a portion of the property to life-science lab space and upgraded its cafe, lobby, fitness center and common areas.
The Wellesley Gateway North property was most recently assessed at $121 million, up from an assessed value of $106 million when Beacon acquired the property,
The property is about 55 percent occupied, according to research from real estate brokerage Hunneman, with office tenants including Aetna, the American Heart Association, and Equitable Advisors.
'Our investment in the property has faced significant headwinds over the last couple of years, primarily due to the pullback in life science and the high-interest rate environment,' a Beacon spokesperson said in an emailed statement.
Beacon worked with its lender for more than a year to restructure its loan, 'but unfortunately have not been able to reach a mutually agreeable resolution,' the company said in a statement.
Catherine Carlock can be reached at
