Provides for State of the Art Voice, Video and Data Communications for Tenants
BOSTON, Dec. 3 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP),
Cornerstone Properties (NYSE: CPP), and Shorenstein Company, all owners and
managers of Class A office buildings throughout the country, today announced
the signing of a non-exclusive agreement with Cypress Communications, Inc.
("Cypress"), a privately owned provider of voice, video and data
telecommunications services.
The agreement calls for Cypress to provide server-based voice, video and
data transmission services as follows: to approximately 40 Class A office
buildings owned by Boston Properties, comprising more than 15.3 million square
feet and containing approximately 580 office tenants; to approximately
87 Class A office buildings owned by Cornerstone Properties, comprising over
18 million square feet and serving over 1,700 office customers; and to
approximately 34 Class A office buildings owned by Shorenstein, comprising
15.1 million square feet and containing approximately 1,050 office tenants.
Under the terms of the agreement, in return for providing access to the
buildings, Boston Properties, Cornerstone Properties and Shorenstein will
participate in any revenues Cypress generates in these Companies' buildings
through a revenue sharing arrangement, and will receive warrants for shares of
common stock in Cypress. The three Companies, or affiliates, will also be
making a combined equity investment in Cypress of $12 million, and will be
entitled to collectively elect one voting member to Cypress' board of
directors.
Boston Properties, Cornerstone Properties and Shorenstein have similar,
individual agreements in place with Allied Riser Communications Corp., a
provider of broadband data, video and voice communications services over
fiber-optic networks to small- and medium-sized businesses in various
metropolitan areas of the United States.
Ward Bourdeaux, executive vice president of Cypress Communications, said,
"We are pleased that Boston Properties, Cornerstone Properties and Shorenstein
have chosen Cypress as a provider of state-of-the-art telecommunications
services to their tenants. Our cutting edge technology and client-focused
service offer corporate tenants the tools they need to compete in today's
fast-paced business environment."
Robert E. Burke, Boston Properties' executive vice president of operations
said, "As we look ahead to the 21st century, we see telecommunications
services as a major factor in attracting and retaining quality tenants for our
office buildings. Through this agreement with Cypress Communications, we will
be able to provide the most advanced telecommunications technology to our
tenants, add substantially to the value of our buildings, and generate
additional revenue for Boston Properties."
Cornerstone Properties' chief operating officer, Lee Van Boven, agreed,
"This is a win-win arrangement for Cornerstone and its tenants. It permits
the company to provide additional high quality telecommunications services to
its tenants and provides an attractive revenue stream and enhanced value for
its shareholders."
Eric Yopes, vice chairman of Shorenstein Company, said, "Cypress' high
quality telecommunications services provide our tenants with the bandwidth and
speed they require to meet the rapidly evolving technological demands of their
businesses. We are pleased to offer our tenants access to such a high quality
provider of these telecommunications services."
Cypress Communications is a full-service communications service provider
formed in 1995 and headquartered in Atlanta, Georgia. Cypress provides
tenants in commercial office buildings with a full line of communications
services, expertly supported by dedicated Cypress professionals. Services
offered include high speed Internet access, digital desktop equipment, local
and long distance phone service, voice mail, digital satellite television, and
much more.
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. Visit Boston Properties on the Internet at
http://www.bostonproperties.com .
Cornerstone Properties is a fully integrated real estate investment trust
(REIT) with a full range of development, acquisition, management and leasing
capabilities. The company currently owns 87 Class A office properties
throughout the U.S. totaling over 18 million square feet and has an additional
$752 million of projects under development. The properties are located in the
major suburban markets and central business districts of Seattle, Northern and
Southern California, Denver, Minneapolis, Chicago, Boston, New York,
Washington, D.C. and Atlanta. For more information visit the Cornerstone
Properties website at http://www.cstoneprop.com .
Shorenstein Company is one of the nation's largest and oldest privately
owned real estate firms. It owns or manages almost 25 million square feet of
Class A office space. The Company is the largest office space landlord in
Oakland and San Francisco, where about 10 million square feet of its
properties are located. In recent years, Shorenstein has expanded nationally
to New York, Boston, Miami, Chicago, Charlotte, Nashville and Phoenix.
Founded by Walter Shorenstein after WWII, the Company is now run by his son,
Douglas Shorenstein.
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. Agreements that the companies enter into may be terminated for a
variety of reasons, including a failure by the companies or the other parties
to fulfill all conditions required for consummation of the agreements.
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Ward Bourdeaux of Cypress Communications,
404-869-2502; Lee Van Boven of Cornerstone Properties,
650-358-5382; Elaine Quinlan of Boston Properties, 617-236-3300,
or Eric Yopes of Shorenstein Company, 415-772-7128
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