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Boston Properties (BXP) Sells Residential Property for $141M
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Boston Properties, Inc. (BXP - Free Report) recently announced that it has disposed of The Avant at Reston Town Center in Reston, VA. This move comes as part of the company’s capital-reallocation strategy focused on expanding into the growing Seattle market.
Reflecting positive sentiments, shares of BXP gained 6.69% on Nov 10 normal trading session on the NYSE.
The 15-story, 359-unit luxury residential property was sold for a gross sales price of $141 million. The transaction generated net proceeds of nearly $138 million for BXP.
Boston Properties, which developed the property in 2013, will continue to own and manage the retail portion of it, which encompasses around 26,000 square feet. This includes several restaurants and a pharmacy as part of the vibrant urban core of Reston Town Center.
Per Richard Ellis, senior vice president, residential of BXP, “The disposition of The Avant demonstrates the value creation contributed by BXP’s residential platform.”
Boston Properties’ sale of the luxury residential property was carried out as the final part of a reverse like kind exchange under Section 1031 of the Internal Revenue Code with its acquisition of Madison Center in Seattle, WA, in May 2022.
The Seattle market has experienced substantial growth in jobs from the technology and life sciences sectors in recent years and emerged as one of the top tech markets for employers and employees. Further, it offers a strong potential for companies in the technology, life sciences, financial services and manufacturing sectors. Hence, Boston Properties’ expansion in the Seattle market seems prudent.
Moreover, BXP anticipates deferring the recognition of taxable gains from the sale for federal income tax purposes.
To complete the exchange in connection with the $730 million acquisition of Madison Centre — a 755,000 square feet, 37-story, LEED-Platinum certified, Class A office property — BXP closed the disposition of three assets for a gross sale price of nearly $700 million. These were 601 Massachusetts Avenue in Washington, DC, The Avant and two land parcels in Dulles, VA.
Such efforts highlight Boston Properties' prudent capital-management practices and release the pressure on its balance sheet.
Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for BXP’s 2022 funds from operations (FFO) per share indicates a favorable outlook, with estimates moving northward over the past two months.
Its shares have lost 16.2% in the past three months compared with its industry's decline of 19.6%.
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is currently pegged at $1.91.
The Zacks Consensus Estimate for Lamar Advertising’s 2022 FFO per share presently stands at $7.24.
The Zacks Consensus Estimate for Equity Commonwealth’s ongoing year’s FFO per share is pegged at 16 cents, presently.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Boston Properties (BXP) Sells Residential Property for $141M
Boston Properties, Inc. (BXP - Free Report) recently announced that it has disposed of The Avant at Reston Town Center in Reston, VA. This move comes as part of the company’s capital-reallocation strategy focused on expanding into the growing Seattle market.
Reflecting positive sentiments, shares of BXP gained 6.69% on Nov 10 normal trading session on the NYSE.
The 15-story, 359-unit luxury residential property was sold for a gross sales price of $141 million. The transaction generated net proceeds of nearly $138 million for BXP.
Boston Properties, which developed the property in 2013, will continue to own and manage the retail portion of it, which encompasses around 26,000 square feet. This includes several restaurants and a pharmacy as part of the vibrant urban core of Reston Town Center.
Per Richard Ellis, senior vice president, residential of BXP, “The disposition of The Avant demonstrates the value creation contributed by BXP’s residential platform.”
Boston Properties’ sale of the luxury residential property was carried out as the final part of a reverse like kind exchange under Section 1031 of the Internal Revenue Code with its acquisition of Madison Center in Seattle, WA, in May 2022.
The Seattle market has experienced substantial growth in jobs from the technology and life sciences sectors in recent years and emerged as one of the top tech markets for employers and employees. Further, it offers a strong potential for companies in the technology, life sciences, financial services and manufacturing sectors. Hence, Boston Properties’ expansion in the Seattle market seems prudent.
Moreover, BXP anticipates deferring the recognition of taxable gains from the sale for federal income tax purposes.
To complete the exchange in connection with the $730 million acquisition of Madison Centre — a 755,000 square feet, 37-story, LEED-Platinum certified, Class A office property — BXP closed the disposition of three assets for a gross sale price of nearly $700 million. These were 601 Massachusetts Avenue in Washington, DC, The Avant and two land parcels in Dulles, VA.
Such efforts highlight Boston Properties' prudent capital-management practices and release the pressure on its balance sheet.
Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for BXP’s 2022 funds from operations (FFO) per share indicates a favorable outlook, with estimates moving northward over the past two months.
Its shares have lost 16.2% in the past three months compared with its industry's decline of 19.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) , Lamar Advertising (LAMR - Free Report) and Equity Commonwealth (EQC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is currently pegged at $1.91.
The Zacks Consensus Estimate for Lamar Advertising’s 2022 FFO per share presently stands at $7.24.
The Zacks Consensus Estimate for Equity Commonwealth’s ongoing year’s FFO per share is pegged at 16 cents, presently.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.