Boston Properties and Hines Close on Record Land Sale for Transbay Transit Tower Parcel

  Boston Properties and Hines Close on Record Land Sale for Transbay Transit
  Tower Parcel

    Ceremonial Groundbreaking of the West Coast’s Tallest Tower Scheduled

Business Wire

BOSTON -- March 26, 2013

Hines and Boston Properties (NYSE: BXP) announced today that it will
ceremonially break ground to celebrate the acquisition of 101 First Street, a
land parcel sold by Transbay Joint Powers Authority (TJPA) for approximately
$192 million. The sale of the 50,000-square-foot parcel closed today at nearly
$4,000 per land foot. The firms are now set to develop the Transbay Transit
Tower, a new Pelli Clarke Pelli-designed icon adjacent to the Transbay Transit
Center, a multi-modal transportation hub and the new heart of the revitalized
South of Market San Francisco neighborhood. It was also announced that a
partnership of Clark Construction and Hathaway Dinwiddie will serve as general
contractors for the soaring, 60-story office building at Mission and First
streets.

At 1,070 feet, the tower is set to be the tallest on the United States’ West
Coast and the seventh tallest in the U.S., edging out New York’s Chrysler
Building. The project was initiated in 2007 and received planning approval in
October of 2012. Construction of the 1.4 million-square-foot tower could begin
as early as summer 2013 with project completion in 2016, just before the
opening of the new transit facility.

A ceremonial groundbreaking celebration is scheduled to occur on March 27,
2013 with such dignitaries in attendance as: San Francisco Mayor Edwin M. Lee;
TJPA Executive Director Maria Ayerdi-Kaplan, Chair of the TJPA Board and
Supervisor Jane Kim, along with other board members, as well as Boston
Properties Chairman and CEO Mortimer B. Zuckerman; and Hines Chairman Gerald
D. Hines.

“The sale of the Transbay Transit Tower property is a transformative moment
for San Francisco,” said Executive Director of the TJPA, Maria Ayerdi-Kaplan.
“The Tower and the Transbay Transit Center will stand at the center of one of
the most forward-looking transit-oriented developments in the world today.”

Zuckerman commented, “We are dedicated to making this an iconic tower that
will stand as a landmark for all who travel to San Francisco and add to its
appeal as one of our most sought after 24/7 cities in the U.S. on top of being
the technology capital of the world.”

Hines Senior Managing Director Paul Paradis notes, “Tenant interest in the
financial, professional services and tech sectors has been extremely high. Now
that we are closing on the land and moving full speed ahead with the design,
I’m confident that discussions will progress into leasing quickly. Transbay
will be a new icon for the city and state, but also a beacon for a progressive
anchor tenant looking for the finest, sustainable office space.”

"This record transaction signifies the investor confidence that we all have in
San Francisco’s future,” said San Francisco Mayor Edwin M. Lee. “Soon to be
the West Coast’s tallest building, the Transbay Tower benefits not only a
world class transit facility but also represents the strength of our City’s
economic recovery, providing jobs to build a better, more sustainable future.”

“Investments in transportation are fueling our economic recovery and the
Transbay Terminal epitomizes how federal support helps attract and leverage
private investment,” said U.S. Transportation Secretary LaHood. “Construction
of the Transit Tower will create thousands of jobs today, while positioning
the surrounding neighborhood to become a major employment center for the Bay
Area for generations to come.”

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, D.C.

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. 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.

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 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.

Contact:

Boston Properties
Arista Joyner, 617-236-3343
Investor Relations Manager
ajoyner@bostonproperties.com
or
Hines
George Lancaster, 713-966-7676
Senior Vice President
george.lancaster@hines.com
or
Singer Associates
Adam Alberti, 415-227-9700
TJPA Press
adam@singersf.com
 
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