Back to top

Analyst Blog

Boston Properties Inc.’s (BXP - Analyst Report) 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.

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 ANN Inc. (ANN - Snapshot Report).

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 region.

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 look include CommonWealth REIT and Sunstone Hotel Investors Inc. (SHO - Snapshot Report), both carrying a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GTT COMMUNI… GTT 11.65 +4.11%
ALLERGAN IN… AGN 161.82 +3.99%
CLAYTON WIL… CWEI 117.06 +3.73%
GREENBRIER… GBX 69.63 +2.37%
RF MICRO DE… RFMD 12.02 +2.04%