Boston Properties announced that it has entered into a purchase and sale agreement to sell a 45 percent 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 $1.5 billion.
The deal puts the combined value the properties around $4.06 billion.
Boston Properties and affiliates of Norges Bank Investment Management will form a joint venture for each property upon closing, and Boston Properties will retain property and leasing management for the ventures.
Boston Properties’ Chief Executive Officer, Owen D. Thomas, commented, “We are delighted to expand our very important relationship with Norges Bank Investment Management, a leading global investor, through this partnership on three of our high-quality assets in New York and Boston. This transaction represents an important step in executing our current strategy of recycling capital from existing assets into new development.”
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 99% leased and subject to existing mortgage indebtedness of approximately $714 million.
The Atlantic Wharf Office Building is a 791,000 square foot Class A office tower located on Boston’s Waterfront. It 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. It is currently 91% leased. The property is unencumbered by debt.
Boston Properties was advised on this transaction by Eastdil Secured. Goodwin Procter acted as legal advisor .