Boston Children’s Hospital Sells Suburban Campus For $62M

A prominent hospital sold its campus in a Boston suburb in a potentially lucrative leasing play.

Boston Children’s Hospital sold its campus at 10 Centennial Drive in Peabody to an affiliate of Barings for $62 million, the Boston Business Journal reported. The North Shore clinical outpost was purchased by a limited liability company tied to the alternative asset manager; the deed was filed in late May.

The deal took the form of a sale-leaseback, a common tactic for real estate tenants looking to unshackle themselves from the burden of ownership.

The move gives the hospital, which has been operating at a 2.1 percent loss for the fiscal year through March, an infusion of cash and releases it from debt obligations tied to its ownership.

The lease covers 114,000 square feet, according to Savills. A spokesperson for the hospital didn’t specify the duration or price attached to the lease, other than to describe it as a long-term deal that will allow operations to continue where they’ve been for three decades.

“Boston Children’s remains fully committed to maintaining our presence in Peabody and caring for all patients and families who come from throughout the region and surrounding communities to our Peabody location,” the hospital spokesperson said in a statement.

As of the end of last month, Barings counted $502 billion in assets under management across private credit, public fixed income, real estate, capital solutions and beyond.

Last month, Barings and 13th Floor Investments secured a $134 million construction loan for Crescendo, the final 37-story, 392-unit apartment tower at the Link at Douglas transit-oriented project in Miami, Florida.

— Holden Walter-Warner