BXP Sells Portions of Rockville Office Campus to Toll Brothers for Residential Pivot

BXP pivots from a life sciences hub in Rockville, Maryland, selling three buildings to Toll Brothers for residential or mixed-use redevelopment.

By: AXL Media

Published: Mar 6, 2026, 6:36 AM EST

Source: Bisnow

Transaction Details and Site Specifics

The sale, finalized in February 2026, involves three of the seven buildings located on a 31-acre campus bordered by Shady Grove Road and Gaither Road. Toll Brothers, a Pennsylvania-based homebuilder, acquired the assets as BXP scales back its original vision for a dense life sciences hub. Maryland property records confirm the purchase price at $24.7 million. While BXP initially purchased the full seven-building portfolio in 2021 to capitalize on the pandemic-era biotech boom, the current divestment suggests a tactical realignment of their Maryland suburban inventory.

Shift from Life Sciences to Residential Demand

The pivot in Rockville reflects a broader trend in the Washington, D.C. metropolitan region, where the rapid expansion of life sciences infrastructure has slowed. In 2021, the sector was viewed as a primary growth engine for Montgomery County; however, rising interest rates and a surplus of lab space have made residential redevelopment a more attractive financial play. Toll Brothers' entry into the site indicates that the mixed-use district will likely lean more heavily into high-end housing or townhomes, addressing the persistent housing shortage in the Shady Grove corridor.

Strategic Rationale for BXP and Toll Brothers

For BXP, the sale allows the REIT to recoup capital and reduce exposure to suburban office assets that require intensive capital expenditures for lab conversions. By offloading nearly half of the buildings on the campus, BXP can focus its resources on its core high-performance office assets or the remaining portions of the Rockville project. For Toll Brothers, the acquisition provides a shovel-ready opportunity in a prime "live-work-play" location near major transit arteries, positioning the firm to capture demand from professionals working in the nearby I-270 "Technology Corridor."