Boston Properties (BXP) has agreed to acquire 360 Park Avenue South, a 20 story office property located at the southwest corner of Park Avenue South and 26th Street in the Midtown South submarket of Manhattan, New York, for $300 million.
The 450,000 square foot property is currently fully leased to a single tenant who will be vacating in late 2021.
Boston Properties plans to make extensive upgrades and transform the property into a premier modern building that will attract Class A clients.
The company expects to close the acquisition in December 2021.
The company expects to fund the acquisition through the assumption of approximately $202 million of first mortgage debt and the issuance of approximately $98 million in Operating Partnership Units (OPUs). The number of OPUs to be issued at closing will be based on the average closing price per share of BXP common stock for the five trading days immediately preceding the closing date, but in no event less than $111 per share.
The office property acquisition of 360 Park Avenue South expands BXP’s footprint into the Midtown South submarket, which is a preferred location for companies and young professionals in the tech, advertising, media, and information (TAMI) sector.
“This acquisition is an ideal value-add opportunity for BXP as it allows us to use our proven real estate skills to reposition and upgrade an existing property in an attractive submarket to secure future lease up opportunities,” said John Powers, Executive Vice President, New York Region, BXP.
“Our long-standing experience in repositioning and transforming well-located properties into high-quality workspaces with attractive amenities will lead to the delivery of a world-class office property that caters to the growing cluster of technology companies in New York City,” he added.