King Street Secures $89M in Financing for Former Pfizer Buildings Buy

CAMBRIDGE, MA—King Street Properties has secured $89 million in acquisition and repositioning financing in connection with its purchase of two former Pfizer laboratory buildings near the Alewife MBTA Station.

The combined purchase price for the two properties at 87 Cambridge Park Drive and 200 Cambridge Park Drive is $54.5 million. HFF, working on behalf of King Street Properties, LLC, placed both acquisition/repositioning loans through Cornerstone Real Estate Advisers, which acted on behalf of its advisory clients. A $22-million, floating-rate loan was secured for 87 Cambridge Park Drive and a $67-million, floating-rate loan was secured for 200 Cambridge Park Drive. The HFF team representing the borrower was led by Managing Director Greg LaBine.

The cost of the acquisition and repositioning of the properties is $112 million, according to HFF. 87 Cambridge Park Drive is a 62,492-square-foot office/laboratory building that is currently vacant. 200 Cambridge Park Drive is a vacant six-story 221,676-square-foot Class A office/laboratory facility that was renovated in 2004. Both properties will be renovated, repositioned and re-leased by King Street. Cushman and Wakefield is handling the leasing of both properties.

King Street Principals Thomas Ragno and Stephen Lynch state, “The properties have terrific laboratory infrastructure in place already, as both were formerly owner-occupied by Pfizer. Our program of renovations to 200 Cambridge Park Drive will include upgrades to the main lobby, a new dining area, new fitness center and renovation of the tenant spaces.”

“King Street has a long and successful track record in repositioning laboratory facilities in Waltham, Lexington and West Cambridge,” adds HFF's LaBine. “In addition to the exceptional sponsorship, Cornerstone was attracted to the high quality of the assets and the strength of the location.”