BOSTON--(BUSINESS WIRE)--Oct. 30, 2014--
Boston Properties, Inc. (NYSE: BXP), a real estate investment
trust, announced that it has completed the previously announced sale of
a 45% interest in each of 601 Lexington Avenue in New York City and
Atlantic Wharf Office Building and 100 Federal Street in Boston to
affiliates of Norges Bank Investment Management for a gross purchase
price of approximately $1.827 billion in cash, less the partners pro
rata share of the indebtedness secured by 601 Lexington Avenue. In
addition to retaining a 55% interest in the ventures, Boston Properties
will retain property and leasing management for the ventures.
601 Lexington Avenue is a 1,669,000 square foot Class A office complex
located in the heart of Midtown Manhattan at East 53rd Street
and Lexington Avenue purchased by the Company in 2001. The property
consists of a 59-story tower as well as a six story low-rise office and
retail building. A redevelopment and repositioning of the low rise
components of the property will be considered by the parties in the
coming years. The complex is currently 100% leased and subject to
existing mortgage indebtedness of approximately $712.9 million.
The Atlantic Wharf Office Building is a 791,000 square foot Class A
office tower located on Boston’s Waterfront with frontage on both the
Rose Kennedy Greenway and historic Boston Harbor. Atlantic Wharf is
Boston’s first green skyscraper, certified LEED Platinum and was a
recipient of the 2012 ULI Global Awards for Excellence. This 31-story
office building was developed by Boston Properties and completed in
2011, and it is currently 100% leased. The property is unencumbered by
debt.
100 Federal Street is a 1,323,000 square foot Class A office tower
located in the heart of Boston’s Financial District. 100 Federal Street
occupies an entire two-acre city block and enjoys a prime location
overlooking Post Office Square Park which features an open lawn,
perennial gardens, arbors, fountains and mature trees. The 37-story
tower features an expansive window line that affords panoramic views of
the Financial District, the waterfront and Boston Harbor, the Charles
River and the Cambridge skyline. The partners will consider a
redevelopment and retail enhancement of the plaza and lower level spaces
of the property in the coming years. Boston Properties acquired this
building in 2012, and it is currently 91% leased. The property is
unencumbered by debt.
Boston Properties is a fully integrated, self-administered and
self-managed real estate investment trust that develops, redevelops,
acquires, manages, operates and owns a diverse portfolio of Class A
office space, one hotel, three residential properties and five retail
properties. The Company is one of the largest owners and developers of
Class A office properties in the United States, concentrated in four
markets – Boston, New York, San Francisco and Washington, DC.
This press release contains forward-looking statements within the
meaning of the Federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,” “estimates,”
“expects,” “guidance,” “intends,” “plans,” “projects” and similar
expressions that do not relate to historical matters. You should
exercise caution in interpreting and relying on forward-looking
statements because they involve known and unknown risks, uncertainties
and other factors which are, in some cases, beyond Boston Properties’
control and could materially affect actual results, performance or
achievements. These factors include, without limitation, the
Company’s ability to enter into new leases or renew leases on favorable
terms, dependence on tenants’ financial condition, the uncertainties of
real estate development, acquisition and disposition activity, the
ability to effectively integrate acquisitions, the uncertainties of
investing in new markets, the costs and availability of financing, the
effectiveness of our interest rate hedging contracts, the ability of our
joint venture partners to satisfy their obligations, the effects of
local, national and international economic and market conditions
(including the impact of the European sovereign debt issues), the
effects of acquisitions, dispositions and possible impairment charges on
our operating results, the impact of newly adopted accounting principles
on the Company’s accounting policies and on period-to-period comparisons
of financial results, regulatory changes and other risks and
uncertainties detailed from time to time in the Company’s filings with
the Securities and Exchange Commission. Boston Properties does
not undertake a duty to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
Source: Boston Properties, Inc.
Boston Properties, Inc.
Michael Walsh, 617-236-3410
Senior
Vice President, Finance
or
Arista Joyner, 617-236-3343
Investor
Relations Manager