PEABODY — Boston Children’s Hospital has sold its Peabody campus for $62 million but stated that patients will see no disruption to care, as the hospital plans to remain at the facility “for many decades to come” through a long-term lease.
The hospital sold the roughly 360,000-square-foot mixed-use property, located at 10 Centennial Dr., to Boston-based real estate company Griffith Properties, after an approximately eight-month sales process, according to Meredith Christensen, Boston Children’s senior director of real estate.
Christensen said Boston Children’s purchased the property about 15 years ago but occupies only about 24% of the building, leasing roughly 87,500 square feet for its clinical operations. The remainder houses a mix of office space, industrial tenants, and other occupants.
The decision to sell came after a review of the hospital’s real estate portfolio. Because managing a largely tenant-occupied building is outside Boston Children’s core business of providing clinical care, Christensen said the hospital wanted a company experienced in mixed-use properties to own and operate the building.
As part of the transaction, Boston Children’s entered what Christensen described as a “sale-leaseback,” allowing the hospital to continue operating from its existing space under a long-term lease.
Christensen emphasized that the sale will not affect patient care or the hospital’s operations. Boston Children’s recently invested in a new MRI machine at the Peabody campus and plans to continue investing in its clinical services there.
