Boston Properties is buying 360 Park Avenue South, a 20-story office tower at the southwest corner of Park Avenue South and 26th Street in Midtown South for $300 million. The 450,000 square-foot property is currently fully leased to a single tenant who will be vacating in late 2021. When it does, the REIT will make extensive upgrades to attract what it calls Class A tenants. Boston Properties expects to close the acquisition in December 2021.
Boston Properties will place about $202 million in first mortgage debt on the property and further fund it by issuing $98 million in Operating Partnership Units.
The REIT owns and operates approximately 8.8 million square feet of Class A office space in Manhattan, primarily in the Park Avenue and Plaza Districts, which is approximately 94% leased. The acquisition of 360 Park Avenue South expands its footprint into the Midtown South submarket, which it notes in a press release is a preferred location for companies and young professionals in the tech, advertising, media, and information sector.
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"This acquisition is an ideal value-add opportunity for BXP as it allows us to use our proven real estate skills to reposition and upgrade an existing property in an attractive submarket to secure future lease up opportunities," said John Powers, executive vice president of the New York Region.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
