<strong>Boston Properties, Inc. ( BXP ), a
real estate investment trust (REIT), recently purchased 680 Folsom
St., an office project located in South of Market district of San
Francisco. The property was purchased from TMG Partners and
Rockwood Capital in a deal which involves two more properties, 50
Hawthorne St. and 690 Folsom St. The purchase price of over
$300 million was funded through cash and Boston Properties'
TMG Partners will be the development and construction manager for
both 680 Folsom St. and 50 Hawthorne St. 680 Folsom St. project
will consist of 521,610 square feet of Class A office space and is
currently 85.0% leased.
Following the completion of the project with initial occupancy
expected in January 2014, the two anchor tenants Macy's,
Inc. ( M ) and Riverbed Technology Inc. will occupy
242,753 square feet on a 15-year lease and 202,467 square feet on a
10-year lease, respectively, in 680 Folsom St.
This acquisition is a strategic move by the company as with the
addition of these upscale properties, Boston Properties has
significantly enhanced the quality of its San Francisco portfolio.
According to a research firm, San Francisco is the best office
market among all the U.S. cities with very high barriers to
Boston Properties owns and develops one of the largest first-class
office portfolios in the U.S. The company concentrates on a few
select high-rent, high barrier-to-entry geographic markets which
usually fare better in a faltering economy. Boston Properties has a
strong and dedicated management team, which is one of the most
respected and accomplished in the industry.
The company benefits from the reputation and relationships of
its key personnel with the industry as a whole, which further helps
in attracting profitable business and investment
BOSTON PPTYS (BXP): Free Stock Analysis Report
MACYS INC (M): Free Stock Analysis Report
VORNADO RLTY TR (VNO): Free Stock Analysis
To read this article on Zacks.com click here.
Boston Properties currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We also maintain our
long-term Neutral recommendation on the stock. One of its
competitors, Vornado Realty Trust ( VNO )
currently also retains a Zacks #3 Rank.