BOSTON, Feb. 11 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP), a
self-managed and self-advised real estate investment trust (REIT), announced
today that it has completed the second phase of a two-phase acquisition of
Embarcadero Center in San Francisco, Calif., from The Prudential Insurance
Company of America ("Prudential") and David Rockefeller & Associates
("Rockefeller"). Situated on 8.4 acres of waterfront property in the heart of
the city's financial district, Embarcadero Center is a six-building portfolio
of Class A space, consisting of an aggregate of 3.66 million square feet of
net rentable office space, 354,000 square feet of retail space and 2,090
underground parking spaces. It is believed to be the largest mixed-use
business complex in the western United States.
In the initial phase of the acquisition, which closed November 12, 1998,
the Company acquired both Prudential's and Rockefeller's entire interest in
the Old Federal Reserve Building and Embarcadero Center West Tower and
Rockefeller's entire equity interest in Embarcadero Centers 1, 2, 3 and 4
(EC 1-4). In the second phase of the transaction, which closed February 10,
1999, Boston Properties acquired Prudential's interest in EC 1-4.
The Company acquired the entire Embarcadero Center portfolio for
approximately $1.233 billion, which was financed as follows: (1) the
incurrence of $730 million of secured financing having a weighted average
maturity of approximately 8.85 years and a weighted average fixed interest
rate of approximately 6.63%; (2) the incurrence of approximately $92 million
of unsecured financing under the Company's line of credit; (3) the issuance of
Preferred Units of the Company's Operating Partnership having an aggregate
liquidation preference of approximately $311 million, and (4) from a separate
transaction, the use of the proceeds from the sale of $100 million of the
Company's preferred stock to Prudential.
Boston Properties Chairman Mortimer B. Zuckerman commented, "Embarcadero
Center offers exceptional long-term opportunity for us, having added this
irreplaceable asset to our portfolio at a price significantly below
replacement cost. We are delighted to have both Rockefeller and Prudential as
major shareholders in the Company."
David Twardock, Senior Managing Director of Prudential, said, "This
transaction epitomizes the way in which Prudential will invest in real estate.
For more than 25 years, the Embarcadero Center partnership with Rockefeller
has been one of our most successful ventures. We look forward to a similarly
rewarding relationship through our investment in Boston Properties."
Boston Properties, Inc. 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 office, industrial and hotel
properties predominantly located in Greater Boston, Midtown Manhattan, Greater
Washington, D.C., San Francisco, Calif., Princeton/East Brunswick, N.J.,
Richmond, Va. and Baltimore, Md. The Company is one of the largest owners and
developers of office properties in the United States.
This press release contains forward-looking statements within the meaning
of the Federal securities laws. Forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be predicted with
accuracy. Acquisitions that are pursued by Boston Properties may not be
consummated for a variety of reasons, including a failure of the Company or
other parties to an agreement to fulfill all conditions to closing required by
the Company or such parties. Information contained in this release regarding
current and future market conditions is based on the Company's assessment of
the market and is subject to the uncertainties inherent in such an assessment.
In particular, national and regional economic conditions and the rate of new
construction and rehabilitation in a market will affect projected rents and
the cost of lease renewals.
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Edward H. Linde, President, CEO & Director,
or David G. Gaw, SVP & CFO, both of Boston Properties, Inc.,
617-859-2600; or General Info., Marianne Stewart, 212-661-8030,
Analysts, Claire Koeneman, 312-266-7800, or Media, Judith
Sylk-Siegel, 212-661-8030, all of The Financial Relations Board
NOTE TO EDITORS: To receive Boston Properties' latest news and
corporate developments via fax at no cost, please call
800-PRO-INFO; use company code BXP. Visit the Company's web site
at http://www.bostonproperties.com. Also see
http://www.frbinc.com
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