Announces Agreement with TMG Partners to Co-develop a 1.1 Million Square-Foot Class A Office Campus
BOSTON--(BUSINESS WIRE)-- Boston Properties, Inc. (NYSE:BXP), one of the largest publicly-traded developers, owners and managers of Class A office properties in the United States, announced today that it has entered into agreements with an affiliate of San Francisco-based TMG Partners ("TMG"), one of the Bay Area's largest mixed-use developers to co-develop Platform 16, an urban campus near Diridon Station in downtown San Jose.
Platform 16 is a 1.1 million square foot Class A office development located on a 5.4-acre site that is adjacent to Google's planned eight million square foot transit village and Diridon Station, the largest multi-modal transportation hub in the Bay Area consisting of Caltrain, VTA light-rail, the ACE train, and the planned BART and high-speed rail lines.
The planned three-building campus, designed by world-renowned architect Kohn Pedersen Fox Associates, will feature large floorplates ranging from 25,000 to 90,000 square feet, 15-foot floor-to-floor heights, 16 large outdoor terraces and multiple indoor and outdoor workspaces as well as on-site amenities including a large fitness and wellness facility and conference center. The project will have immediate access to the adjacent Guadalupe River Park and various retail and restaurant amenities.
The area near Diridon Station has become one of the region's most prominent locations, home to more than 120 technology firms as well as consulting and financial organizations.
"I'm pleased that Boston Properties and TMG Partners will be co-developing this significant project and thank them for their investment in our city," said San Jose Mayor Sam Liccardo. "This planned development will help bring thousands of jobs into our city center with easy access to public transit, and include a number of public space improvements that will help connect the Guadalupe River Park to Platform 16 and the rest of the Diridon Station area."
Boston Properties expects to begin demolition and site improvements in the spring of 2019 allowing for a groundbreaking in mid-summer. The project could be completed as early as 2021.
"We are delighted to collaborate with TMG Partners to bring this project to life," said Bob Pester, Executive Vice President for Boston Properties. "At the site of one of the biggest technology hubs in the country, Platform 16 will help companies attract and retain the best and brightest minds to the area by offering easy access to public transportation, housing, culture, food and entertainment in the heart of San Jose."
"TMG and Boston Properties share the vision of a modern office campus that addresses the top priorities of today's growing companies: a location uniquely transit-accessible, access to affordable housing with San Jose the number one housing-to-jobs ratio in the Bay Area, and a facility that promotes collaboration and efficiency through large floorplates and multiple outdoor spaces," said Matt Field, CIO of TMG. "The building's location will also allow employees to enjoy an exciting urban environment with the adjacent SAP Center, San Pedro Market, and the wide variety of cultural, culinary, and entertainment experiences in downtown San Jose."
Boston Properties has decades of experience developing innovative office space for the Bay Area's top technology companies. Last year, the company opened San Francisco's new icon, Salesforce Tower, the tallest office building west of Chicago which is 100% leased. TMG Partners is one of the Bay Area's leading developers with over 30 million square feet of office, residential, retail, and mixed-use projects since 1984. Boston Properties and TMG Partners previously collaborated on the widely acclaimed 680 Folsom Street project in San Francisco. The project was recognized for its elegant and functional design and is home to the headquarters of Macy's.com, Riverbed, and Anaplan.
Under the terms of the agreements, Boston Properties has ground leased the land from TMG and its partner, Valley Oak Partners for a term of 65 years. In February 2020 the Company will have an option for 12-months to acquire the land at a fixed cost.
"The addition of Platform 16 underscores our strategy of investing in markets with the strongest economic growth opportunities to drive strong returns and durable cash flows over time," commented Owen D. Thomas, CEO of Boston Properties. "We are delighted to expand our presence in the San Jose region and look forward to meeting the growing needs of the region's business community."
About Boston Properties
Boston Properties (NYSE:BXP) is one of the largest publicly-traded developers, owners and managers of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company's portfolio totals 52.7 million square feet and 200 properties, including fourteen properties under construction.
About TMG Partners
TMG Partners, founded in 1984 and headquartered in San Francisco, is a full-service real estate development and management company. TMG has developed more than 30 million square feet of property throughout the Bay Area, including San Francisco, San Jose, Oakland, Mountain View, San Bruno, Novato, and Marin City. One of the most active developers in this area, the company has developed a variety of office, residential, and retail properties, ranging from office campus, to multi-story properties in urban in-fill locations, to mixed-use retail and low-rise and mid-rise suburban buildings. For more detailed information, visit www.TMGPartners.com.
This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words "will," "expects," "intends" and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties' control and could materially affect actual results, performance or achievements. These factors include, without imitation, Boston Properties' ability to satisfy the closing conditions to the pending transactions described above, the uncertainties of investing in new sub-markets, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the ability of our partners and counterparties to satisfy their obligations, the effects of acquisitions, dispositions and possible impairment charges on our operating results, and other risks and uncertainties detailed from time to time in Boston Properties' filings with the SEC. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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Source: Boston Properties, Inc.