Boston Properties Reports June Office Tenant Collections of 98% and Completes $300 Million of Asset Sales
Provides Update on Repopulation Plans across BXP Regions
BOSTON--(BUSINESS WIRE)--Jun. 29, 2020--
Collections: For the month of June, the Company collected more than 98% of its total rent payments from office tenants due
June 1. Rent collections from all tenants, including retail, were 94% in total.
Dispositions: The Company announced recent asset sales including:
Approximately 455,000 square feet of
Capital Gallery, a Class A office complex in Washington, DCwas sold to the Smithsonian Institutionfor a gross sales price of approximately $254 million. The Smithsonian Institution, represented in the purchase by Newmark Knight Frank, has been a long time tenant in the property. Boston Propertiesis pleased that the Smithsonian Institutionwill remain an occupant for the long-term, now as an owner. Boston Propertieswill continue to provide property management services for the Capital Galleryproperty and will retain ownership of 177,000 square feet of the property, which includes 157,000 square feet of office space, 20,000 square feet of retail and a 465-space parking garage. The portion of the property retained by the Company is approximately 100% leased. The Company expects to realize net proceeds of approximately $242 millionfrom the sale after closing costs and related expenses.
Building Eight, a 125,700 square foot vacant office building and two parcels of land at Annapolis Junction Business Parkin Annapolis Junction, Marylandthat was sold for a gross sale price of $47 million. The Company had a 50% interest in the Annapolis Junctionproperties. The Company expects to realize net proceeds of approximately $14 millionfrom the sale after closing costs and the repayment of mortgage debt on the properties.
- Approximately 455,000 square feet of
Repopulation: The Company has been actively working with customers on the repopulation of its properties through the communication and execution of BXP’s Health Security Plan. All BXP buildings have remained open. Repopulation commenced in June in the
Boston, New Yorkand Washington DCregions. San Franciscoand Los Angelesissued protocol for office-based worksites to prepare for repopulation of non-essential workers.
“As state and local regulators are starting to reopen the economies in our core markets, we are actively assisting our customers with plans to repopulate their offices,” said
AT THE COMPANY
Executive Vice President & CFO
Vice President, Investor Relations