Boston Properties Inc. (
, in collaboration with Hines, announced the completion of the
acquisition for a land parcel - 101 First Street, next to the
Transbay Terminal. The companies bought the asset from Transbay
Joint Powers Authority (TJPA) for roughly $192 million.
101 First Street, a 50,000 square foot land parcel, was sold at
nearly $4,000 per land foot. Notably, during the fourth quarter
of 2012, Boston Properties penned a JV with an affiliate of Hines
to acquire a land in San Francisco with the purpose of building
Transbay Tower. Both the partners hold a 50% interest in the JV.
The Transbay Transit Tower will be positioned adjacent to the
Transbay Transit Center. The 61-story building sprawling over
1,070 feet, is touted to become the highest on the U.S. west
coast area and the 7th tallest in the U.S., thus fading the
popularity of New York's Chrysler Building. Boston Properties
expects to initiate construction of the 1.4 million-square-foot
tower as early as summer 2013. The project is expected to
complete in 2016, just prior to the opening of the Transbay
The Transbay Transit Center is a $4 billion visionary
transportation and housing project initiated by TJPA. The project
will replace the existing Transbay Terminal at First and Mission
streets in San Francisco with a modern regional transit hub
connecting 8 Bay Area counties and the State of Calif. through 11
The abovementioned acquisition is a strategic fit for Boston
Properties as it is expected to strengthen its footprint in the
San Francisco market - one of the 5 prime operational markets of
Boston properties. In connection to this, last month, the company
sealed the buyout of a development site - 535 Mission Street - in
San Francisco from Beacon Capital Partners for $71.0 million.
CBRE Group Inc. (
, San Francisco remained one of the top office markets among the
30 most desirable office markets in the U.S. during the fourth
quarter of 2012. Strong demand from the technology sector drove
robust leasing activity and represented 55% of the downtown
market's 10.9 million square feet of leasing activity. Thus, San
Francisco office rents jumped 27% year over year during the
quarter. These factors justify Boston Properties' decision to
expand its reach in the San Francisco market.
Boston Properties currently holds a Zacks Rank #3 (Hold). Other
REITs that are performing better than the company include
Brandywine Realty Trust (
Simon Property Group Inc. (
. Both these stocks carry a Zacks Rank #2 (Buy).
BRANDYWINE RT (BDN): Free Stock Analysis
BOSTON PPTYS (BXP): Free Stock Analysis
CBRE GROUP INC (CBG): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
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