Boston Properties May Have Buyer for CBD Office
A source tells us the 321,000-square foot building is trading at $140 million or $436 per square foot.
WASHINGTON, DC–A source tells us that Boston Properties has found a buyer for 1333 New Hampshire, NW: The Meridian Group. The local company is supposedly buying the 10-story, 321,000-square foot building for $140 million, or 436 per square foot.
The property, which is off Dupont Circle, is about 84% occupied but will be fully vacated by Akin Gump next year. The last time it traded was in 2003 for $111.6 million.
In its latest earnings call, Boston Properties executives informed listeners that it was marketing the building.
CEO Owen Thomas said the reason for the sale was that the REIT was executing many new developments in the area and the lighter renovations that market conditions justified was not a good fit with its ongoing strategy.
President Doug Linde provided more insights about the company’s thinking on 1333 New Hampshire Ave., NW, during the same earnings call. “We actually expect the potential buyer of 1333 New Hampshire to renovate and operate the building at a more moderately price position,” he said (per Seeking Alpha). “This is not an area of the market in which we at Boston Properties concentrate, hence the decision to exit the asset.” At one time, Boston Properties was considering a gut renovation for the building but changed its mind.