Invesco Acquires Boston-Area R&D Asset

100 Rustcraft Road. Photo courtesy of Newmark

Boston’s life science sector continues to attract investors. Invesco Real Estate has acquired a flex office and R&D property in the metro’s Route 128 South submarket, from RJ Kelly and Independencia Asset Management. No financial details were disclosed.

A Newmark team comprising Co-Head of U.S. Capital Markets Robert Griffin, Executive Vice Chairman Edward Maher, Vice Chairman Matthew Pullen and Managing Director Samantha Hallowell represented the sellers and procured the buyer.

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According to CommercialEdge, this is the sixth such asset that Invesco owns in Boston metro, bringing its total office footprint to more than 1 million square feet. The same data provider shows that the property last traded in 2016, for $70 million. At the time, it became subject to a $45.5 million loan provided by Sammons Financial Group, with a maturity date of 2026.

The building is located at 100 Rustcraft Road in Dedham, Mass., on a 53-acre site. The 422,117-square-foot property features a mix of office, laboratory and warehouse space, with loading docks and drive-in doors, and 13- to 26-foot clear heights. It was originally constructed in 1954 as an industrial property, and then converted in 2016. The building is fully leased, anchored by General Dynamics and the American Red Cross.

Boston Lab Space Market Experiences Low Vacancy

According to Newmark’s Matthew Pullen, 100 Rustcraft also features flexible infrastructure and is positioned to benefit from the region’s favorable fundamentals. It is situated 20 miles south of Cambridge, and provides immediate access to the MBTA commuter rail and Interstate 95.

A recent report by Colliers shows that laboratory space vacancy in Cambridge has been below 3 percent for almost five years. Suburban markets are also thriving, with vacancy at 4.1 percent at the end of the first quarter. Metro Boston has more than 30 million square feet of life science space either under construction or planned.

One of the largest projects currently underway is a 334,000-square-foot building in the Seaport District. Eli Lilly & Co. invested $700 million to house its Lilly Institute for Genetic Medicine at the property, developed by Alexandria Real Estate Equities.