Becomes Developer for 2.0 Million Square Feet in Princeton Location
BOSTON, July 8 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP), a
self-managed and self-advised real estate investment trust, announced today
the acquisition of a portfolio of high-quality, Class A office buildings
located in Princeton and East Brunswick, N.J. In addition, an entity
controlled by Boston Properties will have the right to act as the exclusive
developer for the more than 2.0 million square feet of space remaining to be
built in Carnegie Center in Princeton and will have the option to acquire
additional sites in the center at a constant price fixed today. Boston
Properties is not responsible for any carrying costs associated with
undeveloped land.
The Company has closed on the acquisition of a portion (1.37 million
square feet) of the portfolio from The Landis Group consisting of eight
buildings aggregating 950,000 square feet which are part of the Carnegie
Center in Princeton, N.J., and a 420,000-square-foot Class A office tower in
East Brunswick, N.J. The consideration paid for these acquisitions was
$284.0 million, including approximately $8.0 million in deposits relating to
two additional buildings to be acquired upon completion in the fall. This
amount has been paid in the form of $137.0 million in cash, assumption of
$64.0 million of existing debt and approximately $83.0 million in convertible
preferred Operating Partnership Units. As part of the transaction, Alan B.
Landis will become a member of the Boston Properties Board of Directors.
The Princeton portfolio, originally developed by the Landis Group and
known as Carnegie Center, is located on a 560-acre master planned site, with
extensive frontage on both sides of Route 1. The properties acquired or under
contract with Boston Properties presently total 1.75 million square feet of
office space and include:
* 8 buildings containing 950,000 square feet;
* 2 additional preleased buildings containing 394,000 square feet
currently under construction, which Boston Properties will acquire upon
their expected completion this fall;
* 3 additional buildings containing 400,000 square feet which Boston
Properties will begin managing immediately and has an option to acquire
in the future.
Commenting on the acquisition, Boston Properties President and Chief
Executive Officer Edward H. Linde said, "Carnegie Center in Princeton is one
of the dominant office developments in the Mid-Atlantic marketplace. Alan
Landis and his associates at The Landis Group, the developer, have created the
highest-quality environment, making this the location of choice for tenants
seeking Class A office space. In terms of infrastructure, transportation and
amenities, it can't be surpassed. We are pleased to add the buildings in
Princeton to our portfolio which already includes a significant presence in
Cambridge, Mass., another world-renowned academic and business center."
Carnegie Center has won numerous awards for the quality of its planning,
design and operation. In presenting to Carnegie Center its most prestigious
Annual Award for Excellence in 1991, the Urban Land Institute noted that
"Carnegie Center is a superior example of the suburban office park. The
developer's commitment to uphold guidelines has assured the protection of the
land and environment, and has provided numerous amenities for the Center's
suburban employees." The Center is 100% leased; major tenants include
Raytheon, Covance, Nycomed, Bell Atlantic and Marsh & McLennan.
The East Brunswick property acquired by Boston Properties is known as
Tower Center One and was developed in 1986. Tower Center One contains 420,000
square feet and is leased entirely to AT&T. The 23-story building is part of
a mixed-use project that includes a 405-room Hilton Hotel, an additional
420,000-square-foot Class A office tower and two multi-level parking
structures. One of the parking structures, containing 1,252 spaces, was
acquired by Boston Properties as part of the transaction. "Tower Center One
in East Brunswick is a superb building located just off the New Jersey
Turnpike at Interchange 9 and the intersection of Routes 1 and 18, one of the
most desirable locations in this fast-growing area of New Jersey. Both
Carnegie Center and Tower Center One appeal to the knowledge-based companies
which will be the primary generators of economic activity and demand in the
future," Mr. Linde said.
Alan Landis of The Landis Group said, "In making a significant, long-term
investment in another organization, money was only one of several factors.
After 31 years' experience in the building/developing business, I felt most
comfortable making this investment in Boston Properties and in working with
them to create significant additional building opportunities at Carnegie
Center."
According to Insignia/ESG, the current vacancy rate in the Princeton Class
A office market is less than 4% and rents have climbed 20% from the end of
1996 through mid-1998. The vacancy rate in the Woodbridge Metro Park area,
where Tower One is located, is approximately 9%; asking rents for top-quality
office buildings have increased more than 15% in the last 12 months.
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.
 back to top
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.
|
