Back to top

Analyst Blog

Boston Properties, Inc. (BXP - Analyst Report), a real estate investment trust (REIT), recently purchased 680 Folsom St., an office project located in South of Market district of San Francisco. The property was purchased from TMG Partners and Rockwood Capital in a deal which involves two more properties, 50 Hawthorne St. and 690 Folsom St.  The purchase price of over $300 million was funded through cash and Boston Properties’ stock.

TMG Partners will be the development and construction manager for both 680 Folsom St. and 50 Hawthorne St. 680 Folsom St. project will consist of 521,610 square feet of Class A office space and is currently 85.0% leased.

Following the completion of the project with initial occupancy expected in January 2014, the two anchor tenants Macy’s, Inc. (M - Analyst Report) and Riverbed Technology Inc. will occupy 242,753 square feet on a 15-year lease and 202,467 square feet on a 10-year lease, respectively, in 680 Folsom St.

This acquisition is a strategic move by the company as with the addition of these upscale properties, Boston Properties has significantly enhanced the quality of its San Francisco portfolio. According to a research firm, San Francisco is the best office market among all the U.S. cities with very high barriers to entry.

Boston Properties owns and develops one of the largest first-class office portfolios in the U.S. The company concentrates on a few select high-rent, high barrier-to-entry geographic markets which usually fare better in a faltering economy. Boston Properties has a strong and dedicated management team, which is one of the most respected and accomplished in the industry.

The company benefits from the reputation and relationships of its key personnel with the industry as a whole, which further helps in attracting profitable business and investment opportunities.

Boston Properties currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also maintain our long-term Neutral recommendation on the stock. One of its competitors, Vornado Realty Trust (VNO - Analyst Report) currently also retains a Zacks #3 Rank.

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
SYNAPTICS I… SYNA 78.11 +8.14%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
SKYWORKS SO… SWKS 52.07 +2.58%
CLAYTON WIL… CWEI 109.08 +2.51%