BURLINGTON, MA–Lithium-ion battery manufacturer A123 Systems has acquired a converted lab property in Burlington, Massachusetts, at a steep discount, highlighting the cooling of the Greater Boston lab market.
As reported by Bisnow, A123 Systems purchased the 115,000-square-foot lab conversion at 10 Corporate Drive for nearly $20M, according to public records. The seller, The Gutierrez Co., bought the property in 2021 for $42M, meaning the asset traded at roughly a 52% discount.
The Gutierrez Co. converted the former office building into lab space in 2021, during a period of strong demand for laboratory space and widespread office-to-lab conversions. According to Bisnow, market conditions have since shifted, with rising lab vacancy and a glut of new supply making such conversion projects less attractive to traditional life sciences tenants.
A123 Systems is currently based at BXP’s 200 West St. in Waltham and also operates a facility in Novi, Michigan. Neither A123 Systems nor The Gutierrez Co. responded to Bisnow’s request for comment.
Founded in 1978, The Gutierrez Co. has developed more than 11.7M square feet of real estate across lab, industrial and residential properties, according to Bisnow.
