BOSTON–JLL announced that it has arranged $140 million in financing for 101 South Street, a 289,000-square-foot, Class A office and lab development in the Boynton Yards area of Somerville, MA.
The project is under construction and will represent the largest state-of-the-art lab development in Somerville’s growing life science market.
JLL worked on behalf of the borrower, a joint venture between DLJ Real Estate Capital Partners and Leggat McCall Properties, to secure first mortgage construction financing through Bank OZK.
Located one mile from Kendall Square/MIT, the epicenter of the biotech/life science industry, 101 South Street will consist of nine stories of life science space and approximately 13,500 square feet of ground floor retail. The building is scheduled to deliver simultaneously with the planned 2021 opening of the new MBTA Green Line station at Union Square, which is less than a five-minute walk from the project and provides direct access to downtown Boston.
101 South Street is the first phase of the borrower’s planned mixed-use development for the Union Square/Boynton Yards area of Somerville. The overall neighborhood plan is envisioned to be an 18-hour, work-live-play neighborhood offering more than one million square feet of commercial, residential and retail uses in addition to significant public green space. Given its proximity to East Cambridge, Boston and the established Somerville neighborhood, Boynton Yards will create a dynamic urban neighborhood to meet the robust demand from life science and technology companies with the desire to be in Somerville.
JLL’s Capital Markets team representing the borrower was led by Senior Directors Brett Paulsrud and Jennifer Keller.
“We were able to work closely with the development team to secure a capitalization structure that met their objectives,” said Paulsrud. “This development will dramatically transform the landscape of the already popular Somerville neighborhood and it will be very exciting to watch this best-in-class partnership create a new destination for surrounding residents and businesses alike.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
