- P&G’s Gillette closed on the 232 A Street development in South Boston for $99.29M, taking over the full site.
- Breakthrough Properties paid $80M for the property in 2021 and won approval for a 325,000 SF campus.
- Boston is one of four core markets that drove nearly 8M SF of life science absorption, per JLL.
P&G’s Gillette has closed on the 232 A Street development in South Boston, reports Globe St. It paid $99.29M to Breakthrough Properties. The razor maker first planned a headquarters and Technical Innovation Center on the site’s former parking lot. It has now taken over the entire development and pledged to invest close to $1B.
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Gillette Deepens a 125 Year Boston Run
The company has operated in the city for almost 125 years, and the new campus extends that run. Kara Buckley, vice president of community affairs at P&G Gillette, framed the move as a continuation. She said the search prioritized a location that would let the company transform its operations. Staying committed to the neighborhood was also a priority. Buckley called 232 A Street an ideal fit for the capabilities the business needs next. Breakthrough Properties bought the site in 2021. The developer is a joint venture between Bellco Capital and Tishman Speyer. It had positioned 232 A Street as a life science project before Gillette stepped in.
The Details
Breakthrough acquired 232 A Street for $80M in 2021. The new price delivers a premium of a little more than $19M. CBRE’s Jonathan Varholak facilitated the transaction. The joint venture had already secured approval for a 325,000 SF research and development campus. Those plans also include a waterfront park and 1.5 acres of public realm. Sidewalks, bike lanes and Harborwalk upgrades are part of that work. The Harborwalk runs 43 miles along Boston’s shore.
Life Science Demand Returns to Core Markets
Life science real estate is beginning to recover, according to a JLL report. The sector spent years working through weakening demand and a supply overhang. Institutional investors have also increasingly viewed life science real estate as a leading alternative asset class.
Demand is now concentrated in four core markets: Boston, San Diego, the Bay Area and Raleigh-Durham. Those regions recorded nearly 8M SF of absorption in the first quarter. That marked a 44% increase from a year earlier. JLL credits stronger biotech funding, renewed M&A momentum and resilience in capital markets.
Why It Matters
The purchase converts an entitled life science project into an owner occupied campus. A commitment of nearly $1B is large for a single corporate site. It also lands in one of the four markets JLL identifies as leading the recovery. Breakthrough exits above its 2021 basis. The seller also sheds the construction risk attached to the approved plans. South Boston keeps the waterfront park and public realm commitments tied to those approvals.
