Mixed-Use Campus Sale Advances BXP Asset Strategy

Mixed-use campus sale shifts BXP’s Rockville property to Toll Brothers as life sciences plans pause. Mixed-use strategy adapts post-pandemic.

March 6, 2026

Jordan B.

BXP sold three buildings of its Rockville office campus to Toll Brothers for $24.7M.
Life sciences slowdown led BXP to pivot toward residential and mixed-use redevelopment.
The property was originally part of a 1.3M SF life sciences-focused mixed-use plan.
BXP is progressing in its goal to offload $1.9B in noncore assets across its portfolio.

Key Takeaways

Rockville Sale Marks Strategic Shift

Bisnow reports that BXP sold three of seven buildings at its Rockville, Maryland, office campus to homebuilder Toll Brothers. The deal closed for $24.7M. It marks another step in BXP’s effort to reshape its mixed-use strategy for the 31-acre property.

Developers once planned the site as the Shady Grove Innovation District. The project was expected to deliver a 1.3M SF mixed-use campus focused on life sciences. However, market conditions shifted in 2023. As a result, BXP adjusted its plans for the property.

Mixed-Use Plans Adapt to Market

After purchasing the campus in 2021 for $116.5M, BXP responded to cooling life sciences demand by designating roughly half the property for residential use. The western portion, now sold to Toll Brothers, is intended for a 136-home townhome project. Additional phases for residential development are expected, with another developer, DRB Group Mid-Atlantic LLC, also under contract for a separate portion of the park. BXP has committed to demolishing buildings as part of these sales. The shift reflects a broader pullback in life sciences expansion, which has pushed BXP to rethink parts of its West Coast portfolio as well.

Portfolio Realignment Continues

This mixed-use campus sale supports BXP’s broader plan to divest $1.9B in noncore assets over three years. The company continues to reshape its portfolio through targeted property sales.

Recent company updates show BXP has already generated more than $1.1B in net proceeds from asset sales. These transactions include land parcels in Boston, San Francisco, and the Washington, D.C., region. The company also sold several notable multifamily properties during this period.

Overall, these deals reflect BXP’s focus on active asset management and capital recycling. The strategy helps the company respond to shifting conditions in commercial real estate. BXP continues adjusting its mixed-use portfolio as market demand evolves.