Alexandria Real Estate Equities is moving to sell 421 Park Dr., an office and lab property within its Alexandria Center for Life Science – Fenway Megacampus in Boston. In its recent earnings report, the company said it has executed a purchase and sale agreement with an institutional user for the asset. The transaction is expected to close later in the fourth quarter, subject to customary conditions.
According to Alexandria, the disposition is expected to generate significant sales proceeds, though the company did not disclose the agreed sale price. The company also reported that the transaction will reduce its future potential construction spending by approximately $136 million, indicating that planned capital investment at 421 Park Dr. will no longer be required once the asset changes hands.
The pending sale follows other recent activity at the Fenway Megacampus. Earlier this year, tech incubator MassChallenge announced plans to relocate its global headquarters to 401 Park Dr., another building within the same Alexandria-controlled campus. That move positions MassChallenge alongside the life science and innovation ecosystem Alexandria has been curating at the Fenway site.
Alexandria originally gained control of 401 Park Dr., 421 Park Dr. and 201 Brookline Ave. in 2021, when it acquired the block from Samuels & Associates for $1.5 billion. That transaction established the foundation of the Alexandria Center for Life Science – Fenway Megacampus and expanded the company’s life science footprint in the city.
The ownership story for 421 Park Dr. has already evolved once since that acquisition. In 2023, Alexandria sold a portion of 421 Park Dr. to Boston Children’s Hospital in a transaction valued at $173 million. The hospital acquired approximately 268,000 square feet in the building with an eye toward a future move into the space.
However, Boston Children’s Hospital subsequently paused those relocation plans. As reported by the Boston Business Journal and cited in the earnings disclosure, the hospital announced last year that it would delay its move into the 268,000 square feet it had purchased at 421 Park Dr., citing budget constraints. No updated timeline for that relocation was provided in the earnings report.
Together, these transactions underscore the shifting composition of ownership and occupancy within the Fenway Megacampus. Alexandria is using asset sales and capital allocation decisions to reshape its exposure at 421 Park Dr., while institutional users, including healthcare-related organizations and innovation-focused tenants, continue to influence the long-term positioning of the campus.
