BOSTON–(COMMERCIAL THREAD) – Boston Properties, Inc. (NYSE: BXP), the largest developer, owner and manager of Class A office buildings in the United States, today announced that it has completed the acquisition of Safeco Plaza, a 50 story building, 800,000 square foot LEED-Platinum certified Class A office building in Seattle, Washington. Safeco Plaza is currently 90% leased. This acquisition marks the Company’s initial entry into the Seattle market, one of the most dynamic office markets in the United States for companies in the technology, life sciences, financial services and financial services industries. the making. With significant job growth in the tech and life sciences industries, Seattle has grown faster than any major city in 2020 and continues to rank among the top tech markets for employers. and employees.
BXP completed the acquisition through a newly formed joint venture with two institutional partners for a total gross purchase price of approximately $ 465.0 million. Each partner owns approximately one-third (1/3) of the joint venture, and BXP will act as a managing member of the joint venture and provide the usual property management, leasing and other services. BXP expects to account for its investment in the joint venture using the equity method.
The purchase price was funded by cash and the proceeds of a new mortgage secured by the property. The loan is principal amount of $ 250 million and bears interest at a variable annual rate equal to 30-day LIBOR (but not less than 0.15%) plus 220 basis points. The initial interest rate is 2.35%. During its term, the loan requires interest payments only with a lump sum payment due on September 1, 2026.
“BXP’s entry into the Seattle market is a significant milestone for our company,” said Owen Thomas, CEO of BXP. “The acquisition of Safeco Plaza is in line with our long-term strategy of owning, managing and improving leading properties in markets with a diverse and growing economic base and a large pool of potential tenants with knowledge workers who have a demonstrated preference for quality office buildings.
With its distinctive position in the Seattle skyline, Safeco Plaza occupies a full city block in Seattle’s central business district with panoramic views of the Seattle skyline, Puget Sound, and the Olympic Mountains. The property features sleek exterior architecture, a large outdoor plaza, generous window lines, and an efficient center floor plate that provides flexibility for a variety of tenant sizes. It is well located in the busy urban center of the city, next to retail shops, restaurants and the waterfront. Safeco Plaza is a highly desirable location for tenants from all sectors of the market, with a walking score of 99 and a transit score of 100, providing immediate access to Seattle’s light rail, subway lines and ferry terminals, as well as adjacency for future expansions. of the East Link light rail.
This press release contains forward-looking statements within the meaning of federal securities laws. You can identify these statements by our use of the words “will”, “expect”, “intent” and similar expressions which do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements, as they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the control of Boston Properties and could materially affect the companies. actual results, performance or achievements. These factors include, but are not limited to, the risks inherent in entering new markets, the risks associated with the use of debt to finance acquisitions, including the risk of refinancing, the risks that our use of Joint ventures may limit our flexibility with respect to the assets they own and other assets we may wish to acquire, and other risks and uncertainties detailed from time to time in documents filed by Boston Properties with the SEC. Boston Properties does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Boston Properties
Boston Properties (NYSE: BXP) is the largest developer, owner and manager of Class A office buildings in the United States, focused on six markets: Boston, Los Angeles, New York, San Francisco, Seattle and Washington, DC . The Company is a fully integrated real estate company, organized as a Real Estate Investment Trust (REIT), which develops, manages, operates, acquires and owns a diversified portfolio of primarily Class A offices. Including properties held by non-joint ventures. consolidated, as of June 30, 2021, the Company’s portfolio totaled 51.5 million square feet and 197 properties, including nine properties under construction / redevelopment. For more information on Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.