WASHINGTON, DC—Boston Properties reports it has a binding agreement to sell its 505 9th St. N.W. office building here for approximately $318 million.

Boston Properties revealed the transaction today when it released its second quarter 2015 financial results. The 321,943-square-foot Class A office building was built and developed by Boston Properties in 2007. The property is held in a joint venture and Boston Properties owns 50% of the office building located at the corner of 9th and E streets.

The Boston-based firm reported that the July 29th sale includes the assumption of approximately $117 million of mortgage indebtedness by the unidentified buyer. The transaction is expected to close by the end of the third quarter of this year.

Michael LaBelle, senior vice president and chief financial officer of Boston Properties, tells Globest.com that its partner in the building is a group of investors that owned the land prior to Boston Properties acquiring a position in the property. He said the buyer is a domestic-based investor.

The lead tenant at 505 9th St. N.W. is law firm DLA Piper.

Boston Properties reported second quarter funds from operations for the quarter ended June 30, 2015 were $208.7 million, or $1.36 per share basic and $1.36 per share diluted. Those results compare to FFO for the quarter ended June 30, 2014 of $207.0 million, or $1.35 per share basic and $1.35 per share diluted. The company's reported FFO of $1.36 per share diluted was greater than the guidance previously provided of $1.32-$1.34 per share diluted primarily due to better than expected portfolio operations of $0.02 per share and lease termination income of $0.01 per share, the company states.