Total existing-home sales—completed transactions that include single-family homes, townhomes, condominiums and co-ops—rose 3.1% from December to a seasonally adjusted annual rate of 4.00 million in January.
Boston Properties to Acquire 360 Park Ave. South for $300M
BOSTON—Boston Properties, Inc. reported on July 27 it had agreed to acquire 360 Park Ave. South, an existing 450,000 square foot, 20-story office property in the Midtown South submarket of Manhattan for $300 million.
The property is currently fully leased to a single tenant who will be vacating in late 2021 providing BXP with the opportunity to complete extensive upgrades and transform it into a premier modern building that will attract Class A clients. The company expects to close the acquisition in December 2021 for a purchase price of approximately $300 million.
Boston Properties expects to fund the acquisition through the assumption of approximately $202 million of first mortgage debt and the issuance of approximately $98 million in Operating Partnership Units (OPUs). The number of OPUs to be issued at closing will be based on the average closing price per share of BXP common stock for the five trading days immediately preceding the closing date, but in no event less than $111 per share.
BXP owns and operates approximately 8.8 million square feet of Class A office space in Manhattan, primarily in the Park Avenue and Plaza districts, which is approximately 94% leased to credit-strong tenants. The acquisition of 360 Park Ave. South expands BXP’s footprint into the Midtown South submarket, which is a preferred location for companies and young professionals in the tech, advertising, media, and information (TAMI) sector, company officials stated.
“This acquisition is an ideal value-add opportunity for BXP as it allows us to use our proven real estate skills to reposition and upgrade an existing property in an attractive submarket to secure future lease up opportunities,” said John Powers, executive vice president, New York Region, BXP. “Our long-standing experience in repositioning and transforming well-located properties into high-quality workspaces with attractive amenities will lead to the delivery of a world-class office property that caters to the growing cluster of technology companies in New York City.”
Earlier in July, Boston Properties announced that Hilary Spann will succeed John Powers as head of the company’s New York office effective January 1, 2022. Powers has decided to retire from the company in December 2021 after more than eight years of service. Spann will join BXP as an Executive Vice President in September 2021.
“We are grateful to John for his many contributions to BXP over the years, first as a long-term trusted advisor to our founders and then as the leader of our New York office. He will be greatly missed,” stated Owen Thomas, CEO of BXP. “We are delighted to have Hilary join BXP’s executive leadership team. Hilary’s breadth of real estate experiences as an investor and an owner will be a tremendous asset to the company, and I look forward to working with her as she leads the future strategic growth of our New York Region.”
“We are thrilled that Hilary will be joining BXP,” added Doug Linde, president of BXP. “Hilary’s investment and management experience are complementary to our operating model and I am confident she will bring her talents and passion for real estate to her leadership of our New York team.”
Spann brings to BXP more than 20 years of real estate investment and development experience, most recently as Managing Director, Head of Americas, Real Estate at CPP Investments, a position she has held since 2017. During her tenure as Head of Americas for Real Estate, she was responsible for leading all aspects of the real estate business, including investment strategy, talent acquisition and management, and portfolio management. Prior to joining CPP Investments in 2016, Spann held several executive roles in acquisitions and asset management at the Global Real Assets Group at J.P. Morgan Asset Management, including as Managing Director, Head of Northeast Acquisitions. During her tenure at J.P. Morgan from 2005 through 2015, she was heavily focused on the office market in Manhattan, completing 27 transactions totaling $12 billion in gross asset value, with $3.5 billion of equity committed.
Boston Properties is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in five markets—Boston, Los Angeles, New York, San Francisco and Washington, DC. The company’s portfolio totals 51.6 million square feet and 196 properties, including nine properties under construction/redevelopment.