BOSTON, Sept. 1 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP), a
real estate investment trust, announced today the acquisition of two Class A
office towers with a total of approximately 506,000 square feet, and two
development sites, one of which has entitlements for a 275,000-square-foot
Class A office building. The purchase price of $117.6 million was paid
$113.1 million in cash and $4.5 million in a promissory note. This
acquisition is part of The Gateway Commercial Center in South San Francisco, a
117-acre, master-planned, mixed-use business community offering office
buildings, hotels and retail space. The Gateway is strategically located
along the San Francisco growth corridor that spans from the Silicon Valley to
downtown San Francisco, and is the closest Class A office complex to
San Francisco International Airport.
Boston Properties is acquiring 601 and 651 Gateway Boulevard, the
development site at 611 Gateway Boulevard, and an additional two-acre
development site, all located on a 22.3-acre parcel. The Gateway Commercial
Center is 96% leased to a variety of tenants with Cellular One, Prudential
Insurance Company and Allstate Insurance Company being the major tenants.
Mortimer B. Zuckerman, Chairman of Boston Properties, said, "This
acquisition exemplifies Boston Properties' strategy of investing in Class A
office properties with high-quality tenants in tight real estate markets.
Boston Properties' presence in the San Francisco office market, established
earlier this year with our acquisition of Embarcadero Center, is further
strengthened by the acquisition of The Gateway, a high-quality asset in a
demand-driven, supply-constricted market. The Gateway property is also
desirable because of the credit-quality of its tenants and the development
potential it provides."
Bob Pester, Boston Properties' Senior Vice President and Manager of the
San Francisco Office, said, "The San Francisco Peninsula area market absorbed
1.1 million square feet of new office space in 1998, and there are currently
over 30 companies looking for approximately 1.0 million square feet of
high-quality office space. Additionally, this market has experienced average
rental rate growth over the past five years of 15% per year. Strong demand
for office space is expected to continue due to the existence of emerging
industries, such as biotechnology and the internet, and investment in real
estate facilities in this area by major corporations."
Boston Properties 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 Class A office, industrial
and hotel properties. The Company is one of the largest owners and developers
of Class A office properties in the United States, concentrated in the
Northeast Corridor from Virginia to Greater Boston and in Greater San
Francisco.
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 . Also see
http://www.frbinc.com .
This press release contains forward-looking statements within the meaning
of the Federal securities laws. Forward-looking statements reflect our
current views with respect to future events and financial performance and are
inherently subject to risks and uncertainties, many of which cannot be
predicted with accuracy. Acquisitions that are consummated by Boston
Properties may fail to produce the anticipated result for a variety of
reasons, including downturns in the national and local economies, competition
from other properties, oversupply or reduction of demand for space in the
local market, vacancies and increased operating costs. Developments that are
commenced by Boston Properties may not be completed for various reasons, and,
if completed, may not produce a desired yield on invested capital. Agreements
that the Company enters into may be terminated for a variety of reasons,
including a failure by the Company or the other party to fulfill all
conditions required for consummation of the agreements. Other relevant risks
and uncertainties are detailed from time to time in our filings with the
Securities and Exchange Commission.
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Investor Relations, Elaine Quinlan of Boston
Properties, Inc., 617-236-3300; or General, 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
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