Company Also Acquires Leasehold Interest of Class A Office
Building in Cambridge, Mass. from Harvard University
BOSTON, July 8 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP), a
self-managed, self-advised real estate investment trust ("REIT"), announced
today that it has completed the acquisition of 100% of the commercial property
and a 50% controlling partnership interest in approved development rights
associated with the Prudential Center Complex in Boston, Mass., from
Prudential Insurance Company of America. Total purchase price of the
acquisition was $519.0 million for the commercial property and $27.0 million
for the development rights, funded by a combination of a $300.0 million
mortgage, $96.2 million in Operating Partnership Units, $53.8 million of
common stock of the Company and the balance in cash. Boston Properties also
announced that it has completed the acquisition for $37.0 million in cash of
the leasehold interest of University Place in Cambridge, Mass.
Prudential Center Complex is one of the premier addresses in New England.
Office and retail tenants include leading firms, retailers and restaurants.
In 1993, Prudential invested $110.0 million to renovate the retail portion of
the project, which benefits from the project's 6,000 workers, guests of the
neighborhood's 5,000 hotel rooms and residents and visitors of the upscale
Back Bay section. The project has enjoyed a stable list of high-quality
tenants that has kept the office portion near full occupancy for more than 30
years. The 2,550-space parking garage, the largest in Boston, provides the
project with a significant competitive advantage.
Boston Properties also completed the acquisition of the leasehold interest
of University Place, a 196,000-square-foot Class A office building located
near Harvard Square in Cambridge, Mass., subject to a ground lease from
Harvard University expiring December 31, 2029. The price of the acquisition,
completed June 25, 1998, was $37.0 million in cash and included an agreement
under which Harvard University will occupy all space in the building as it
comes available. The building, which also includes a 491-space, below-grade
parking garage, is 99% leased.
Boston Properties, Inc. is a fully integrated, self-administered and self-
managed real estate investment trust ("REIT") that develops, redevelops,
acquires, manages, operates and owns a diverse portfolio of office, industrial
and hotel properties predominantly located in the Greater Boston, Greater
Washington, D.C., Midtown Manhattan, Baltimore, Md., and Richmond, Va.,
markets. 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. 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,
617-859-2600; or Marianne Stewart, General Info., 212-661-8030,
Claire Koeneman, Analysts, 312-266-7800, or Judith Sylk-Siegel,
Media, 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
1-800-PRO-INFO. Use company code BXP. Visit the Company's web
site at http://www.bostonproperties.com.
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