Boston Properties Buys SoMa Redevelopment Site

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August 29, 2012
Boston Properties Buys SoMa Redevelopment Site

TMG/Rockwood JV Trades 560,714-SF Portfolio Undergoing Renovation in San Francisco Market Highly Coveted By Investors

Boston Properties (NYSE: BXP) purchased three properties totaling 560,714 square feet in San Francisco's South of Market area from a venture of TMG Partners and Rockwood Capital. The sale price was undisclosed.

The assets included 680 Folsom St., a 14-story, 479,220-square-foot office building that was formerly occupied by AT&T; 690 Folsom St., a two-story, 33,600-square-foot industrial property on the corner that may be redeveloped; and 50 Hawthorne St., a three-story, 47,894-square-foot office structure.

The office buildings are undergoing renovation, with 680 Folsom gaining two more floors of office space. Once construction of 680 Folsom is completed, Riverbed Technology Inc. will occupy 202,467 square feet on six floors under a 10-year lease and Macy's will move into 242,753 square feet on the top seven floors beginning January 2014.

San Francisco, packed onto just under 47 square miles on the tip of a peninsula, is one of the most constrained and highly sought markets in the nation for new supply.

"This transaction maximizes the opportunities for both seller and buyer. When completed, the former Pacific Bell office building, built in 1964 and now under construction, will house a total of 521,610 square feet of Class A office space. Adding to its San Francisco portfolio of premier office properties, Boston Properties is acquiring the 85 percent leased building before it is completed," said Michael Covarrubias, chairman and chief executive of TMG.

Skidmore, Owings & Merrill designed the project and Tipping Mar Associates engineered it. Plant Construction Co. will provide construction services.

See CoStar COMPS #2543605 for more information.

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