As anticipated, Alexandria, the nation’s largest life science real estate investment trust, has sold its Newton Riverside Center (275 Grove Street, Auburndale) to Boston-based Greatland Realty Partners for $117 million, half of the price it paid for it in 2020. Adjacent to the now-paused Mark Development Riverside project, the three-building parcel was designated as a life sciences complex, part of a growing number of similar building ventures along the I-95 corridor. However, rising construction costs and interest rates have stalled a number of planned residential and commercial projects.
Greg Reibman, President and CEO of the Charles River Regional Chamber, who reported the sale in his June 29 newsletter, noted that the 510,000 sq. ft. building site had already secured permits for lab space conversion. In assessing the benefit to Greatland, Mr. Reibman explained that life science buildings have staggered workforce hours and that the Riverside Center benefitted from its direct MBTA access, both of which reduce local automobile traffic, which was attractive to neighborhood residents. He said, in the near term, Greatland has a robust slate of paying tenants at 275 Grove Street and he expects the current downturn in life sciences development will rebound as the economy improves and interest rates decline. Greatland has life science properties in Weston, Lexington, Cambridge, and Marlboro.
Ward 4 Councilor Chris Markiewicz, who chairs the Riverside Development Liaison Committee and is a Certified Public Accountant, concurs. He said that at the moment, residential development is at the core of the development market and that developers are building “to order” rather than on speculation. Echoing many local and state politicians and officials, Councilor Markiewicz underscored the significant housing shortage in Massachusetts. He, too, lamented the loss of the life sciences project, which had been carefully vetted by the City.
Fellow Ward 4 City Councilor Josh Krintzman recalled that local residents voiced concerns about the safety of life science labs and were unhappy about the appearance of air control devices on the buildings, but were reassured that there would be no harm from the kind of science projects allowed in the buildings. Councilor Markiewica noted that Alexandria agreed to the screening the roof area, and he outlined the rigorous regulatory standards imposed on science and research projects by state, federal, local agencies. Newton’s Biosafety Committee oversees the regulatory requirements. Councilor Markiewicz voiced regret that the proposed development has been delayed and thinks the sale “tells you something” about the current market. At the same time, both he and Mr. Reibman agree that Greatland, with its rented property, can wait out the economic development slump.
Ed. Note: We revised this article to clarify that the Riverside Center property at 275 Grove Street is adjacent to, but not part of Mark Development’s Riverside project.
