Connect with us

Hi, what are you looking for?

Jewish Business News

Real Estate

Mort Zuckerman in $1.5 Billion Deal for 3 Office Buildings

601 Lexington Avenue

Mortimer Zuckerman’s Boston Properties has announced the sale of a 45% interest in three of its properties – one in New York and two in Boston – for $1.5 billion to affiliates of Norway’s Norges Bank Investment Management

The properties are 601 Lexington Avenue in Manhattan and Atlantic Wharf Office Building and 100 Federal Street in Boston.

Boston Properties and affiliates of Norges Bank Investment Management will form a joint venture for each property upon closing, and Boston Properties will retain property and leasing management for the ventures.

Boston Properties’ Chief Executive Officer, Owen D. Thomas, commented, “We are delighted to expand our very important relationship with Norges Bank Investment Management, a leading global investor, through this partnership on three of our high-quality assets in New York and Boston. This transaction represents an important step in executing our current strategy of recycling capital from existing assets into new development.”

601 Lexington Avenue is a 1, 669, 000 square foot Class A office complex located in the heart of Midtown Manhattan at East 53rd Street and Lexington Avenue purchased by the Company in 2001. The property consists of a 59-story tower as well as a six story low-rise office and retail building. The complex is currently 99% leased and subject to existing mortgage indebtedness of approximately $714 million.

The Atlantic Wharf Office Building is a 791, 000 square foot Class A office tower located on Boston’s Waterfront with frontage on both the Rose Kennedy Greenway and historic Boston Harbor. Atlantic Wharf is Boston’s first green skyscraper, certified LEED Platinum. This 31-story office building was developed by Boston Properties and completed in 2011, and it is currently 100% leased. The property is unencumbered by debt.

100 Federal Street is a 1, 323, 000 square foot Class A office tower located in the heart of Boston’s Financial District. 100 Federal Street occupies an entire two-acre city block and enjoys a prime location overlooking Post Office Square Park. The 37-story tower features an expansive window line that affords panoramic views of the Financial District, the waterfront and Boston Harbor, the Charles River and the Cambridge skyline. Boston Properties acquired this building in 2012, and it is currently 91% leased. The property is unencumbered by debt.

Following the closing, Boston Properties will continue to include all of the assets and liabilities and results of operations of the properties owned by the joint ventures in its consolidated financial statements.

Click to comment

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Advertisement