Baxter Healthcare Signs 200,000 SF Lease in Cambridge

CAMBRIDGE, MA—Baxter Healthcare Corp., a subsidiary of Baxter International Inc., has signed a lease for approximately 200,000 square feet of space at 650 East Kendall St. here where it will establish a major biopharmaceutical research and development center.

The lease deal between Baxter and building ownership BioMed Realty Trust, Inc. and Prudential Real Estate Investors is for a 12-year term. Baxter will be establishing a new global innovation and research and development center at the site for its biopharmaceuticals business, which is expected to become a separate, independent global company known as Baxalta Inc., in mid-2015.

In connection with the Baxter deal, BioMed Realty executed a lease termination with an existing building tenant Aveo Pharmaceuticals, Inc. As a result of these transactions, 650 East Kendall is now 100% leased, BioMed Realty reports.

The 650 East Kendall building is a 282,000-square-foot life science facility that is supported by six levels of below-grade parking. Located in proximity to the campuses of M.I.T. and Harvard, and designed by famed architect Paul Zejfen, the building features a spacious atrium with stairs connecting its six floors of laboratory and office space, interior balconies and exterior terraces. The building received Gold status certification by the Leadership in Energy and Environmental Design of the U.S. Green Building Council.

In a press announcement, Baxter Healthcare states that it expects to bring together approximately 400 R&D employees at the innovation center, as well as its business development, oncology and biosimilars teams. The R&D positions that will relocate to the new center are currently based in California and Europe, the company reports. The new biopharmaceutical company, to be known as Baxalta Inc., will maintain certain R&D operations at its location in Vienna, Austria, and will have its corporate headquarters in northern Illinois.

"Our new innovation center will increase R&D collaboration and efficiency, connect us directly to a rich pool of talent in new and emerging biotech areas, and strengthen our ability to drive programs forward in cooperation with current and future partners," says John Orloff, M.D., vice president and global head of research and development for Baxter BioScience.

The company expects to open the first phase of the 200,000-square feet in leased space later this year, and says it “will continue to transition work to the new facility over the next two years to ensure continuity of current programs.”

BioMed Realty's Chairman and Chief Executive Officer Alan D. Gold, says of the deal with Baxter Healthcare, "We are very proud to welcome Baxter to Kendall Square and our 650 East Kendall building. Baxter is a global healthcare leader with an amazing track record of scientific achievement, commercialization and corporate responsibility. By forging this long-term connection with Baxter in Cambridge, we have the opportunity to support their technological expertise and scientific innovation for many years to come, and we look forward to providing the best environment for their business and employees to continue their great work."