NEW YORK CITY-Boston Properties has put its proposed office tower near Times Square on hold, the Boston-based REIT revealed in an SEC filing Thursday. BP had entered into a joint venture with Related Cos. in 2007 to acquire land parcels and air rights for the tower at the corner of Eighth Avenue and 46th Street, reportedly for $350 million.
The SEC filing, announcing the REIT’s fourth-quarter results, did not specify exactly when the decision to suspend development on the proposed 740 Eighth Ave. was made. “The proposed project was comprised of an assemblage of land parcels and air-rights, including contracts to acquire land parcels and air-rights, on which the joint venture was to construct a class A office property,” according to the company’s form 8-k filing. As a result, Boston Properties took a charge totaling approximately $23.2 million, representing its share of land and air-rights impairment losses, forfeited contract deposits and previously incurred planning and pre-development costs.
In its 8-k filing, Boston Properties reported a loss of about $165 million in the value of three of the former Macklowe Properties it acquired as part of a JV in May along with the General Motors Building at 767 Fifth Ave. Those office towers include the 292,000-square-foot 540 Madison Ave., a 591,000-square-foot office building at 125 W. 55th St., and the 664,000-square-foot Two Grand Central Tower at 44th Street between Lexington and Third avenues. The GM Building, considered the crown jewel of the $3.95-billion deal, has maintained its value.
A spokeswomen for Boston Properties did not respond to GlobeSt.com’s inquiries by deadline. The now-delayed 740 Eighth was seen as a potential rival to the 1.1-million-square foot 11 Times Square, a speculative office property under construction by Parsippany, NJ-based SJP Properties. A spokeswoman for SJP, which topped out the structure’s 600-foot concrete core in October, says the project is proceeding on schedule for a 2010 opening.