Hines and Boston Properties Partner on Transbay Tower
Project Approved by San Francisco Planning Commission
SAN FRANCISCO -- October 23, 2012
The San Francisco office of Hines announced today two major milestones of its
Transbay Tower project, a 1.4 million-square-foot, 61-story icon to be built
adjacent to the Transbay Transit Center.
First, Hines recently finalized the formation of a joint venture with Boston
Properties (NYSE: BXP) to acquire the project land from the Transbay Joint
Powers Authority. The approximately $190 million acquisition is expected to
close in the first quarter of 2013. Hines and Boston Properties each have a 50
percent interest in the venture.
In addition, on October 18, the San Francisco Planning Commission granted
final planning approval for the tower to proceed. Designed by Pelli Clarke
Pelli Architects (PCPA), the building is slated to be the tallest on the West
Coast, with its crown soaring to a height of 1,070 feet.
Hines Chairman Gerald D. Hines commented, “We are very gratified to have both
a stellar partner and the city’s nod of approval. We think the tower will be a
beautiful addition to San Francisco’s beloved skyline as well as an extremely
desirable and sustainable workplace next to one of the state’s busiest transit
Mortimer B. Zuckerman, Chairman and CEO of Boston Properties, added, “We are
delighted with our partnership with the Hines organization. Both organizations
share the same values of building the highest-quality buildings in the best
locations. The combination of our two organizations will provide superior
management at all levels of this extraordinary project, which we are committed
to make a landmark for generations to come.”
The Transbay Transit Center project is a visionary transportation and housing
project that is transforming downtown San Francisco and the San Francisco Bay
Area’s regional transportation system by creating a “Grand Central Station of
the West Coast” in the heart of a new transit-friendly neighborhood. The $4
billion project will replace the former Transbay Terminal at First and Mission
streets in San Francisco with a modern regional transit hub connecting eight
Bay Area counties and the State of California through 11 transit systems.
Designed by PCPA, the new Transit Center will feature a 5.4-acre rooftop park.
The Transit Center project is a national model for environmentally friendly
transit-oriented development. The Transbay Tower will be built adjacent to the
Transit Center and the land sale proceeds will provide additional financing
for the Transit Center project.
Hines is a privately owned real estate firm involved in real estate
investment, development and management. The firm’s historical and current
portfolio of projects underway, completed, acquired and managed includes 1,208
properties representing more than 488 million square feet of office,
residential, mixed-use and industrial facilities. With offices in 104 cities
in 18 countries, and controlled assets valued at approximately $23.8 billion,
Hines is one of the most respected real estate organizations in the world.
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 three retail properties. The company is one
of the largest owners and developers of Class A office properties in the
United States, concentrated in five markets – Boston, New York, Princeton, 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, Boston Properties’
ability to satisfy the closing conditions to the pending transactions
described above, the 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 costs and availability of
financing, 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 regulatory changes and other
risks and uncertainties detailed from time to time in Boston Properties’
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.
George Lancaster, 713-966-7676
Senior Vice President
Arista Joyner, 617-236-3343
Investor Relations Manager
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