Boston Properties Sells TSA Headquarters Project In Springfield

Boston Properties is working on five build-to-suit office projects in the D.C. area, and it has just cashed in on one of them.

The developer announced in its Q4 earnings report Tuesday it completed the sale of the Transportation Security Administration headquarters project in Springfield for $98.1M.

The sale, first reported by the Washington Business Journal, was made to an affiliate of USAA Real Estate. Boston Properties will still serve as the project development manager.

The General Services Administration in August 2017 awarded Boston Properties a 15-year lease for the 625K SF build-to-suit facility. The award came after Boston Properties successfully protested the TSA's original lease at Alexandria's Victory Center, with a judge voiding the deal.

The deal came as part of a string of five major leasing wins for Boston Properties totaling nearly 3M SF throughout the region. Boston Properties is also developing build-to-suit office projects for Leidos and Fannie Mae in Reston, for Marriott International in Bethesda and for WilmerHale in Foggy Bottom.

The developer has pursued a strategy of selling assets to help fund those new construction projects. In January 2018, it sold the International Trade Commission's Southwest D.C. Headquarters for $119M. In December, it sold a Dupont Circle office building for $136.5M to a JV of The Meridian Group and WeWork. Also last quarter, it sold a 41-acre piece of land at its Tower Oaks property in Rockville for $46M, according to its earnings report.

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