Boston Properties Announces Acquisition of 535 Mission Street in San
Francisco and Agreement to Acquire the Last Remaining Development Site in
Reston Town Center
BOSTON -- February 6, 2013
Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, announced
today it has completed the acquisition of 535 Mission Street, a development
site, in San Francisco, CA for an aggregate purchase price of approximately
$71.0 million cash, including work completed and materials purchased to date.
The Company expects to commence construction of the project in mid-February
2013 and expects to complete the project by the fall of 2014 at a total
budgeted cost of approximately $215 million.
535 Mission Street will be a 27-story, 378 foot tall Class A office tower with
approximately 307,000 rentable square feet of office and retail space and is
expected to achieve a LEED Gold designation. The site is located in the South
Financial submarket of San Francisco, one of the most attractive submarkets
for both traditional office and technology tenants. This office tower will
have a striking glass design with column free floor plates and will have
dramatic views of the city and bay featuring floor to ceiling glass.
In addition, the Company has entered into an agreement to purchase the last
remaining parcel of land in the urban core of Reston Town Center for
approximately $27 million. The closing is expected to occur in the first
quarter of 2013 and is subject to customary closing conditions. The land
parcel is commercially zoned for 250,000 square feet of office space. The
Company is evaluating a potential mixed-use development plan, which could
include residential uses as well as commercial uses.
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 four 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, the Company’s 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 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.
Boston Properties, Inc.
Michael Walsh, 617-236-3410
Senior Vice President, Finance
Arista Joyner, 617-236-3343
Investor Relations Manager
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