Boston Properties Completes Site Acquisition for Second Times Square Property

		BOSTON PROPERTIES TIMES SQUARE TOWER Times Square Tower, a 47-story, 1.2 million square foot office building to be built by Boston Properties on the south side of 42nd Street between Broadway and Seventh Avenue in New York City. Designed by world renowned architect David Childs of the firm Skidmore, Owings & Merrill, LLP, the tower is 44% leased to Arthur Andersen, one of the world's leading professional services firms. (PRNewsFoto)[PM] NEW YORK, NY USA

BOSTON, Dec. 4 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP), a leading real estate investment trust, announced today that it has completed the acquisition of 100% of the leasehold interest and ground rent credits for the site of the future "Times Square Tower" from The Prudential Insurance Company of America for a purchase price of $164 million in cash. The 47-floor, 1.2 million-square foot Class A office building will be built by Boston Properties on the south side of 42nd Street between Broadway and Seventh Avenue in New York City. Construction is expected to start in the second quarter of 2001 with initial occupancy expected in the fourth quarter of 2003. The site is part of the 42nd Street Development Project, a redevelopment project initiated by the State and City of New York. (Photo: http://www.newscom.com/cgi-bin/prnh/20001204/CGM020 ) Boston Properties recently signed a lease for 524,000 square feet on the lower floors of Times Square Tower to house the New York practice of Arthur Andersen, one of the world's leading professional services firms. Times Square Tower was designed by world-renowned architect David M. Childs of the firm Skidmore, Owings & Merrill, LLP. Times Square Tower is the second Boston Properties project in Times Square. The first, directly across Seventh Avenue from Times Square Tower, is "5 Times Square," which is currently under construction and is 100% leased to the professional services firm Ernst & Young. 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 four core markets -- Boston, Washington, DC, Midtown Manhattan and 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 are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy. 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. Acquisitions that are pursued by Boston Properties may not be consummated for a variety of reasons, including a failure to reach agreement with the selling party regarding the acquisition price or other terms of a contribution or acquisition agreement. 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.