| This morning, Boston Properties announced that it has agreed to pay $930M to a jv of affiliates of Normandy Real Estate Partners and Five Mile Capital Partners for the John Hancock Tower in the Back Bay. ?This is instantly the largest sale of the year in the nation at nearly $1B,? Real Capital Analytics' Dan Fasulo tells us.?It's fantastic to see a trophy sale outside of NYC or DC. Investors are finally venturing out.? |
| Boston Properties bought New England?s tallest tower for $289.5M in cash and the assumption of about $640.5M in debt. Boston Properties expects to incur about $2M in acquisition-related costs in a deal due to close by year end. ?The Hancock is an outstanding asset for its location and design,? Boston Properties' Arista Joyner says. ?We acquire assets that perform well in rising and challenging markets.? Normandy and Five Mile Capital appear to have made about $250M on the sale. Starting in ?08, Normandy began to purchase debt on the property that Broadway Partners bought for $1.3B in ?07. Last year, Normandy and Five Mile Capital purchased the 1.7M SF tower for $650M, when it was 20% vacant. It's now about 3% vacant and Normandy is investing $50M in renovations. |
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