Boston Properties has completed the acquisition of Safeco Plaza, a 50-story, 800,000 square-foot, LEED-Platinum certified, Class A office property in Seattle, Washington.
BXP completed the acquisition through a newly formed joint venture with two institutional partners for $465 million.
Each partner owns approximately one-third (1/3rd) of the joint venture, and BXP will serve as the joint venture’s managing member and provide customary property management, leasing and other services.
The purchase price was funded with cash and proceeds from a new mortgage loan secured by the property. The loan has a principal amount of $250 million and bears interest at a variable per annum rate equal to the then 30-Day LIBOR (but not less than 0.15%) plus 220 basis points. The initial interest rate is 2.35%. During its term, the loan requires interest-only payments with a balloon payment due at maturity on September 1, 2026.
This acquisition marks the company’s initial entry into the Seattle market, one of the most dynamic office markets in the U.S. for companies in the technology, life sciences, financial services, and manufacturing sectors.
“BXP’s entry into the Seattle market is an important milestone for our Company,” said Owen Thomas, CEO of BXP. “The acquisition of Safeco Plaza is consistent with our long-term strategy of owning, managing, and improving premier properties in markets with a diverse and growing economic base and a deep pool of prospective tenants with knowledge workers that have a demonstrated preference for high-quality office buildings.”
