Boston Properties (BXP) Buys 360 Park Avenue South in Manhattan
Boston Properties (BXP) expands in the Manhattan market with the acquisition of the office property, 360 Park Avenue South.
Boston Properties, Inc. BXP has acquired 360 Park Avenue South in the Midtown South submarket of Manhattan, NY, from Enterprise Asset Management, Inc. Per the press release, Boston Properties began transforming the 450,000 square-foot, 20-story office property immediately after the acquisition.
As part of its Strategic Capital Program, Boston Properties accomplished the buyout through a newly formed joint venture (JV) with two institutional partners for roughly $300 million.
Boston Properties, which owns 42% interest in the property will serve as the managing member and provide customary property management, leasing and other services. BXP expects this investment in the JV to be accounted for under the equity method of accounting.
The acquisition seems a strategic fit with Midtown South submarket emerging as a preferred location for companies and young professionals in the technology, advertising, media and information (TAMI) sector.
Moreover, the property is positioned in a highly desirable location for the growing cluster of technology companies. With the addition of amenities, public and private spaces through repositioning, the property is likely to lure technology and creative firms.
Per management, “360 Park Avenue South marks the second acquisition we have completed through the Strategic Capital Program since July, underscoring the Program’s impact as we seek to enhance the Company’s competitive position when evaluating new investment opportunities.”
BXP owns and operates 8.8 million square feet of premier office space in Manhattan, mainly in the Park Avenue and Plaza Districts. As of Sep 30, 2021, the properties were 94% leased to credit-strong clients. With its portfolio of modern, class A office buildings, Boston Properties is well-poised to benefit from the flight-to-quality preference of office tenants.
Shares of this currently Zacks Rank #3 (Hold) player have gained 17.8% year to date, underperforming the industry's rally of 26.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
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