Seaport Square Parcel P
Financing Secured for Under-Construction Parcel P in Seaport
KKR, a leading global investment firm, announced that it has completed a major investment in a joint venture with WS Development and PSP Investments for 400 Summer Street, a new state-of-the-art life science tower currently under construction in Boston’s Seaport District. Through its investment in the joint venture, KKR will collaborate with WS Development and PSP Investments in ownership of the asset, while WS Development continues to oversee and lead development and management of the property.
400 Summer Street is a 16-story, purpose-built life science building located in the center of Boston’s Seaport District submarket. Once completed, the 635,000 square foot property will serve as the headquarters of Foundation Medicine, a leading Boston-based biotechnology company and subsidiary of Roche Pharmaceuticals, which has leased 100% of the laboratory and office space in the building. 400 Summer Street is part of the 33-acre Boston Seaport development project led by WS Development and will feature both interior and exterior public spaces connecting Summer and Congress Streets, as well as more than 30,000 square feet of neighborhood retail space.
“We have a strong conviction in life sciences real estate and believe there will be lasting demand for high-quality lab and work space in the world’s top innovation centers. We are thrilled to be growing our portfolio of trophy life science assets with our investment in 400 Summer Street in Boston’s Seaport. In addition to our recent acquisition in San Francisco’s Mission Bay, we are now serving the two largest and most premier life science clusters in the U.S.,” said Justin Pattner, KKR Partner and Head of Real Estate Equity in the Americas.
“We are very pleased to welcome KKR as a strategic partner on 400 Summer Street,” said Jeremy Sclar, Chairman and CEO of WS Development. “For decades, KKR has been one of the most innovative investment organizations in the world, and we couldn’t be more excited about their investment in 400 Summer Street in the Seaport, a neighborhood that is home to some of the most forward-thinking and progressive employers, residents and retailers in the world.”
"The Seaport District has become a tremendous ecosystem for innovation and growth. 400 Summer Street, once completed, will further underpin the area’s commitment to the life science cluster,” said Carole Guerin, Managing Director, Head of Americas, Real Estate Investments, PSP Investments. “PSP Investments is proud to again partner with KKR, as well as to continue our relationship with WS Developments as we work together to nurture and support what is now a global hub of innovation and creative economy.”
Daniel Rudin, Managing Director at KKR, said, “WS Development’s master plan project is helping position the Seaport as a destination of choice for top talent and employers. We are excited to support this endeavor by investing alongside WS and PSP Investments in 400 Summer Street, a property of exceptional quality designed to meet the needs of an elite biotechnology company and developed with a strong focus on public space and sustainability. This is a great addition to our portfolio as we continue to grow our presence in the Boston market and the life sciences sector more generally. The ability to work with PSP Investments and WS, a best-in-class group we have followed for some time is a great outcome.”
Currently, work is progressing on steel framing on 400 Summer Street, part of Seaport Square's Parcel P. The upcoming 16-story laboratory building will be home to Foundation Medicine, which will occupy 580,000 square feet of laboratory and office space. The project will also host 30,000 square feet of neighborhood retail uses.