Firm’s managing director/partner discusses development, leasing and the LSRE market
Michael DiMinico
BOSTON – King Street Properties is one of the world’s largest private owner/operators of life science real estate (LSRE). The Boston-based LSRE investment and development firm has 3 million square feet under ownership and management, and 4.5 million square feet in development, with assets in “core research hubs” including Greater Boston, New York, North Carolina’s Research Triangle and the San Francisco Bay area.
In addition to acquisitions and ground-up development for specific tenants, the firm has a branded concept it calls Pathway by King Street, which offers move-in ready speculative space and fully permitted, shovel-ready pad sites – “two time-savings options which can shorten occupancy by 8-24 months,” it says.
To learn more about King Street, BREI spoke with Michael DiMinico, a managing director and partner with the firm. Here’s our exclusive interview, including an update on the firm’s current and future projects, as well as Mr. DiMinico’s take on the state of the LSRE market.
BREI: Mike, thanks so much for chatting with us. Could you please give us some background about King Street and your role with the firm?
DiMinico: King Street specializes in life science real estate with 20-plus years of experience serving clients in the industry. As one of the most experienced owners/operators of life science real estate, we partner with our clients, facilitating their needs as they make their way through the intricate life science process, and create cutting-edge environments so companies can do their work in safe, efficient, and innovative spaces. I serve as managing director/partner and am responsible for all aspects of the real estate development process including design, permitting, leasing, financing and construction.
BREI: Along with your Morrisville, N.C., campus, Allston Labworks in Boston is probably your most prominent project now under development. Can you give us a construction update?
DiMinico: King Street is transitioning the underutilized stretch of Western Avenue to accommodate a modern life science industry and cutting-edge technologies at what is now called Allston Labworks. The 4.27-acre mixed-use project will consist of 534,000 square feet of lab space, 20,000 square feet of retail, a residential building with 26 percent affordable units, and improved outdoor open space including an activated public plaza and public park. We celebrated a groundbreaking with the community back in October, and Allston Labworks is well underway. Steel is already vertical at 250 and 280 Western Ave, both of which will reach their topping-off milestones later this year and we are excited to deliver this transformative project in 2024. We have partnered with BioBuilder Educational Foundation, an award-winning organization launched by MIT professionals, to run the Learning Lab which will help students access tools and programs to unlock their potential as life science innovators.
The Allston Labworks mixed-use project in Boston will include 534,000 square feet of lab space, 20,000 square feet of retail, residential units and public spaces. (Rendering courtesy of King Street Properties)
BREI: Boston area lab vacancies have risen during the past three quarters. Has that tighter leasing market affected the Allston project or your leasing strategy for it?
DiMinico: The life science sector is a unique industry with strong fundamentals, and we are confident it will continue to outperform other real estate asset classes in the marketplace. Rents and prices have grown steadily year after year for over 10 years. At King Street we take the long view. As a spec builder, we understand there are cycles, but there will always be a need for this kind of space. Improved health and longevity is important to everyone and we are well-positioned to support our tenants’ needs through the long haul.
BREI: Beyond Allston, can you please give us an update on Morrisville and your other current projects?
DiMinico: Pathway Devens (in Devens, Mass.), the 45-acre destination for innovators in the biotech realm, provides biotech and advanced manufacturing companies with customizable spaces that are tailor-made for their specific requirements. King Street recently announced that leading clean energy firm Electric Hydrogen has leased 187,236 square feet of manufacturing space at Pathway Devens. Azzur, which offers clean rooms on demand, signed a lease last year for 100,000 square feet. Phase one of the campus is now complete. The campus amenity building is currently under construction and the last two GMP buildings will be built during the final phase.
We have expanded our Pathway offering to the Research Triangle and have over 1 million square feet underway in Morrisville, N.C. Construction is underway and the first GMP (Good Manufacturing Practice) buildings at Pathway Triangle will deliver core and shell later this year.
King Street Properties celebrated a grand opening of its new premier life science facility at 101 Cambridgepark Drive in Cambridge, Mass., in May. The 160,000 square foot laboratory property was developed in the heart of the premier life science cluster and is 100 percent leased.
We recently held a groundbreaking ceremony for The Landing in San Francisco area. Once completed, The Landing will offer a 4.5-acre campus with 503,500 square feet of lab and office space with hospitality-infused amenities.
And, lastly, we recently expanded our footprint to San Diego, acquiring 5825 Oberlin Drive in Sorrento Mesa, a strong life science node in that market. The building will be renovated to accommodate life science tenants and upgrade amenities, including outdoor work areas.
BREI: That’s an impressive list. What are the biggest opportunities and challenges for the company today – and, for that matter, for the LSRE sector as a whole?
DiMinico: The life science industry is doing important and complicated work in a world dominated by health concerns. We work side-by-side with our clients to develop safe, efficient and innovative space. Building for the life sciences is not a “one-size-fits-all” process. Because this is our specialty market, we can navigate the entitlements process with confidence, and we understand the intricacies of how to build and operate lab space. Building for a variety of needs from graduation space to GMP on spec creates a tremendous opportunity to make sure science companies can find the right space for their operations when they need it.
BREI: What sets King Street apart from the other top players in the LSRE space?
DiMinico: Our experience and our customer-focused approach during development and management allows us to always keep an eye on meeting customer needs, so that real estate is never an obstacle to innovative companies being able to focus on what they do best.
Allston Labworks is an example of this. We are using our depth of experience to create an amazing facility across from the best educational institutions and finest hospitals in the world. We are also doing our part to encourage students from the Boston area to get involved in life sciences by partnering with BioBuilder to create a learning lab. Additionally, Allston Labworks incorporates amenities and benefits for the entire neighborhood, including space for local artists and community gathering areas.
BREI: What are your goals for King Street for the rest of 2023? For the longer term?
DiMinico: We have a tremendous pipeline of projects underway including development projects in the Bay Area, the Research Triangle and Greater Boston, and are focused on delivering these projects and the best-in-class real estate experience that companies have come to expect from King Street.
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