Sources previously told GlobeSt.com that the most likely sites are 280 Park Ave. and 5 Times Square Tower. Boston Properties expects that it would distribute at least the amount of proceeds necessary to avoid paying a corporate level tax on the applicable gains realized from the sale of the assets, estimated to be in excess of $1 billion. The company intends to use the remaining net proceeds to fund development opportunities or asset acquisitions, reduce outstanding indebtedness, repurchase shares of common stock, declare a special dividend or retain cash for future investment opportunities.
Boston Properties emphasized that it has not entered into a contract for the sale and there can be no assurances that these assets will in fact be sold or, if sold, what the gross proceeds from the sale would be. The 1.2-million-sf 280 Park Ave. has a tenant base which includes Credit Suisse, the NFL and Deutsche Bank. The 1.1-million-sf 5 Times Square Tower serves as the headquarters location for Ernst & Young. That site is not the only Times Square asset that might change hands shortly. Suitors are seeking 6 Times Square, the site of the former Knickerbocker Hotel.
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