This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Boston Properties, Inc. (
- 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. (
- 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.