IIP Commits $245M Mezzanine Loan to IQHQ’s Alewife Park Life Science Campus
Event summary
- IIP agreed to a $245M mezzanine loan for Phase I of Alewife Park, a 27-acre life science campus in Cambridge, MA.
- $111M was funded at closing to repay an $85M bridge loan, with the remaining $134M to be disbursed by Q4 2027.
- The loan carries a 15.8% interest rate (14% floor) and matures in February 2028 with a one-year extension option.
- Phase I is 78% leased to Lila Sciences, with $800M invested prior to IIP’s involvement.
The big picture
IIP’s $245M mezzanine loan to IQHQ’s Alewife Park reflects the growing convergence of real estate and life sciences, as REITs increasingly diversify into high-growth sectors. The deal underscores the appeal of life science campuses in biotech hubs like Cambridge, where strong leasing momentum justifies high-yield debt. IIP’s move also signals confidence in the long-term stability of the sector, despite broader economic uncertainties.
What we're watching
- Execution Risk
- Whether IQHQ can stabilize and fully lease Alewife Park’s Phase I by the loan’s maturity in 2028.
- Portfolio Expansion
- How IIP’s growing life science exposure complements its core cannabis-focused REIT strategy.
- Market Dynamics
- The pace at which life science real estate demand sustains high-yield financing opportunities.