An ambitious Cambridge mixed-use project is reportedly close to signing a deal that will kick off the venture in a major way, with high-flying Genzyme Corp. said to have tentatively agreed to relocate its operations to the $400 million Cambridge Research Park being developed by Lyme Properties.
Although both sides remained mum on the matter, one source familiar with the situation said last week that Genzyme has signed a letter of intent to take approximately 280,000 square feet at the master-planned park, which is slated to feature more than 1.2 million square feet when it is fully built out. The complex is being developed at a 10-acre parcel in Kendall Square that formerly housed a gas plant operated by Commonwealth Energy.
They’ve been focused on that site for a while, the source said of Genzyme. From what I hear, they are at the tail end of negotiations and are getting ready to wrap it up … It’s very close to being a done deal.
Lyme Properties principal Robert Green acknowledged last week that his firm does have a letter of intent with a prospective tenant. Green would not identify the company, however, and also downplayed the significance of the current negotiations.
We’ve got some serious discussions going … but we don’t have any agreements with anybody, Green said. We don’t have anything hard at the moment.
Nonetheless, the source said it would be a surprise if the deal did not proceed at this point, maintaining that Genzyme is hoping to move its corporate headquarters to the property from nearby One Kendall Square. The source said it is likely that Genzyme would retain some of its operations at One Kendall, at which it has a sizeable mix of laboratory and administrative space.
Genzyme officials did not return phone calls by Banker & Tradesman’s press deadline. The biotech giant has proven to be one of Cambridge’s most successful companies, with total revenues for the first quarter of 2000 at $29.1 million, 6 percent above that registered during the fourth quarter of 1999. The firm manufactures a divergent collection of biotech products, and locally is in such other markets as Allston and Framingham.
Genzyme has been searching for a permanent headquarters for nearly a decade. It was poised at one point to move its base to Allston, where it did build a manufacturing plant in the early 1990s. An expansion of that property was thwarted when Conrail refused to move its railroad yard out of the area to accommodate Genzyme, forcing the firm to remain in Cambridge.
In the meantime, the Cambridge Research Park finally appears to be shaping up after a rocky beginning, one in which Lyme had to dodge an onerous moratorium on new construction, site-specific downzoning efforts and questions about the environmental condition of the park. None of those obstacles proved fatal, however, and the firm now appears ready to take advantage of the city’s booming real estate market. Indeed, Genzyme is reportedly just one of several companies that are considering moves to the park, which abuts a canal and the Charles River.
First announced in September 1998, Cambridge Research Park will encompass a blend of office and lab space, a hotel, retail and entertainment uses, and approximately 250 apartments. The development plan also calls for 2,000 parking spaces and more than two acres of open space, including a public park and a civic square. Green said that substantial progress is being made on all fronts, with discussions also ongoing to get the hotel underway. Several traffic and pedestrian changes are also planned to improve access to the area and surrounding streets.
If the Genzyme deal does proceed, it would be ironic given that Lyme Properties founder David Clem was also responsible for development of One Kendall Square. During his 25 years in Cambridge, Clem has participated in more than two million square feet of residential and commercial development, most recently working on creating biotech facilities at 270 Albany St., 21 Erie St. and 325 Vassar St.
