Boston Properties Inc
) Times Square Tower in Manhattan is on sale, as per a Bloomberg
report. The deal value for this 1.2 million-square-foot office
building is expected to surpass $1 billion. The news was revealed
by the company at the National Association of Real Estate
Investment Trusts conference in Chicago.
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Mostly occupied, the Times Square Tower, a 47-story Class A
office tower, enjoys an enviable location in the popular shopping
district. With Times Square being New York's greatest
transportation hub with easy access to several bus, subway, and
rail lines, the property can fetch good value for Boston
Properties. Its tenant roaster includes several law firms,
restaurant chain and clothing retailer
Also, currently there is sufficient impetus for such prized
properties in this region. This is well evident from the recent
sale of 40% stake in New York's General Motors Building, to the
families of Chinese property developer Zhang Xin and Brazil's
banking tycoon Safra, in a deal that valued the property at
around $3.4 billion. Boston Properties holds the remaining stake
in this 2.0 million square feet (59 stories) building.
Also, according to a Financial times report, Carlyle Group has
agreed to dispose a nearby office tower for $1.3 billion, nearly
double the amount paid for it five years back. Such deals reflect
the demand for these premium retail and office properties in the
Rise in rents and the value of such properties in the area are
attractive and, hence, the value recognition of its asset through
sale by Boston Properties is a strategic fit. The company can
redistribute the funds in its several other projects. Moreover,
the company is benefiting from improved core operations and has
been successful in maintaining a strong grip on high
barrier-to-entry geographic markets across the U.S.
Boston Properties currently holds a Zacks Rank #3 (Hold).
However, other REITs that are performing better and deserve a
Sunstone Hotel Investors Inc.
), both carrying a Zacks Rank #1 (Strong Buy).