Announces Agreement with TMG Partners to
Co-develop a 1.1 Million Square-Foot Class A Office Campus
BOSTON--(BUSINESS WIRE)--Jan. 29, 2019--
Boston
Properties, Inc. (NYSE: BXP), one of the largest publicly-traded
developers, owners and managers of Class A office properties in the
United States, announced today that it has entered into agreements with
an affiliate of San Francisco-based TMG Partners (“TMG”), one of the Bay
Area’s largest mixed-use developers to co-develop Platform 16, an urban
campus near Diridon Station in downtown San Jose.
Platform 16 is a 1.1 million square foot Class A office development
located on a 5.4-acre site that is adjacent to Google’s planned eight
million square foot transit village and Diridon Station, the largest
multi-modal transportation hub in the Bay Area consisting of Caltrain,
VTA light-rail, the ACE train, and the planned BART and high-speed rail
lines.
The planned three-building campus, designed by world-renowned architect
Kohn Pedersen Fox Associates, will feature large floorplates ranging
from 25,000 to 90,000 square feet, 15-foot floor-to-floor heights, 16
large outdoor terraces and multiple indoor and outdoor workspaces as
well as on-site amenities including a large fitness and wellness
facility and conference center. The project will have immediate access
to the adjacent Guadalupe River Park and various retail and restaurant
amenities.
The area near Diridon Station has become one of the region’s most
prominent locations, home to more than 120 technology firms as well as
consulting and financial organizations.
"I’m pleased that Boston Properties and TMG Partners will be
co-developing this significant project and thank them for their
investment in our city," said San Jose Mayor Sam Liccardo. “This planned
development will help bring thousands of jobs into our city center with
easy access to public transit, and include a number of public space
improvements that will help connect the Guadalupe River Park to Platform
16 and the rest of the Diridon Station area.”
Boston Properties expects to begin demolition and site improvements in
the spring of 2019 allowing for a groundbreaking in mid-summer. The
project could be completed as early as 2021.
“We are delighted to collaborate with TMG Partners to bring this project
to life,” said Bob Pester, Executive Vice President for Boston
Properties. “At the site of one of the biggest technology hubs in the
country, Platform 16 will help companies attract and retain the best and
brightest minds to the area by offering easy access to public
transportation, housing, culture, food and entertainment in the heart of
San Jose.”
“TMG and Boston Properties share the vision of a modern office campus
that addresses the top priorities of today’s growing companies: a
location uniquely transit-accessible, access to affordable housing with
San Jose the number one housing-to-jobs ratio in the Bay Area, and a
facility that promotes collaboration and efficiency through large
floorplates and multiple outdoor spaces,” said Matt Field, CIO of TMG.
“The building’s location will also allow employees to enjoy an exciting
urban environment with the adjacent SAP Center, San Pedro Market, and
the wide variety of cultural, culinary, and entertainment experiences in
downtown San Jose.”
Boston Properties has decades of experience developing innovative office
space for the Bay Area’s top technology companies. Last year, the
company opened San Francisco’s new icon, Salesforce Tower, the tallest
office building west of Chicago which is 100% leased. TMG Partners is
one of the Bay Area’s leading developers with over 30 million square
feet of office, residential, retail, and mixed-use projects since 1984.
Boston Properties and TMG Partners previously collaborated on the widely
acclaimed 680 Folsom Street project in San Francisco. The project was
recognized for its elegant and functional design and is home to the
headquarters of Macy’s.com, Riverbed, and Anaplan.
Under the terms of the agreements, Boston Properties has ground leased
the land from TMG and its partner, Valley Oak Partners for a term of 65
years. In February 2020 the Company will have an option for 12-months to
acquire the land at a fixed cost.
“The addition of Platform 16 underscores our strategy of investing in
markets with the strongest economic growth opportunities to drive strong
returns and durable cash flows over time,” commented Owen D. Thomas, CEO
of Boston Properties. “We are delighted to expand our presence in the
San Jose region and look forward to meeting the growing needs of the
region’s business community.”
About Boston Properties
Boston Properties (NYSE: BXP) is one of the largest publicly-traded
developers, owners and managers of Class A office properties in the
United States, concentrated in five markets - Boston, Los Angeles, New
York, San Francisco and Washington, DC. The Company is a fully
integrated real estate company, organized as a real estate investment
trust (REIT), that develops, manages, operates, acquires and owns a
diverse portfolio of primarily Class A office space. The Company’s
portfolio totals 52.7 million square feet and 200 properties, including
fourteen properties under construction.
About TMG Partners
TMG Partners, founded in 1984 and headquartered in San Francisco, is a
full-service real estate development and management company. TMG has
developed more than 30 million square feet of property throughout the
Bay Area, including San Francisco, San Jose, Oakland, Mountain View, San
Bruno, Novato, and Marin City. One of the most active developers in this
area, the company has developed a variety of office, residential, and
retail properties, ranging from office campus, to multi-story properties
in urban in-fill locations, to mixed-use retail and low-rise and
mid-rise suburban buildings. For more detailed information, visit www.TMGPartners.com.
This press release contains forward-looking statements within the
meaning of the Federal securities laws. You can identify these
statements by our use of the words “will,” “expects,” “intends” and
similar expressions that do not relate to historical matters. You should
exercise caution in interpreting and relying on forward-looking
statements because they involve known and unknown risks, uncertainties
and other factors which are, in some cases, beyond Boston Properties’
control and could materially affect actual results, performance or
achievements. These factors include, without
imitation, Boston Properties’ ability to satisfy the closing conditions
to the pending transactions described above, the uncertainties of
investing in new sub-markets, the uncertainties of real estate
development, acquisition and disposition activity, the ability to
effectively integrate acquisitions, the ability of our partners and
counterparties to satisfy their obligations, the effects of
acquisitions, dispositions and possible impairment charges on our
operating results, and other risks and uncertainties detailed from time
to time in Boston Properties’ filings with the SEC. Boston
Properties does not undertake a duty to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190129005964/en/
Source: Boston Properties, Inc.
Boston Properties Contacts:
Michael
LaBelle
Executive Vice President,
Chief Financial Officer and
Treasurer
(617) 236-3352
Sara Buda
Vice President, Investor Relations
(617) 236-3429
sbuda@bostonproperties.com
Helen Han
Managing Director, Boston Properties San Francisco
(415)
772-0753
sbuda@bostonproperties.com
TMG Partners and Valley Oak Partners Contact:
Julie
Chase
(415) 710-7108
jchase@jchasepr.com