NEW YORK CITY — Boston Properties Inc. has entered into an agreement to sell its 45 percent ground-leasehold interest and related tax credits in Times Square Tower for $684 million in cash. An affiliate of Norges Bank will buy the interest. The property is unencumbered by debt. Boston Properties and an affiliate of Norges Bank will form a joint venture upon closing, and Boston Properties will retain property and leasing management for the venture. Times Square Tower is a 1.2 million-square-foot, Class A office tower located in the heart of Times Square in New York City. The 99 percent occupied property was developed by Boston Properties and completed in 2004. The property is subject to a ground lease with the City of New York with 76 years remaining, and it benefits from a Payment In Lieu of Taxes (PILOT) program through June 2024. The joint venture will hold the contractual right to purchase the fee interest in the property beginning in July 2024.
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