WASHINGTON, D.C. — Boston Properties Inc. (NYSE: BXP) has sold 601 Massachusetts Avenue, an approximately 480,000-square-foot office building in Washington, D.C., for $531 million. The buyer was not disclosed, but the Washington Business Journal reports that it was an affiliate of Mori Trust Co., a real estate development and investment firm based in Tokyo.
Boston Properties originally developed the 11-story property in 2015. The firm will continue to provide property management services at 601 Massachusetts, which was 98 percent leased at the time of sale.
601 Massachusetts Avenue is situated in Washington, D.C.’s Mount Vernon Triangle neighborhood. Nearby attractions include the White House, Capital One Arena, Metro stations and the Walter E. Washington Convention Center. According to online property listings, the property includes a nine-story glass atrium, onsite fitness center, roof terrace and retail space leased to RPM Italian, Soul Cycle and lunch restaurant Devon & Blakely.
Boston Properties structured the disposition as part of a reverse like-kind exchange under Section 1031 of the Internal Revenue Code with its $730 million acquisition in May of Madison Centre, a 37-story office tower in Seattle.
“This disposition demonstrates continued investor demand for premier, well-leased office properties,” says Owen Thomas, chairman and CEO of Boston Properties. “The completion of this transaction is an important milestone in BXP’s current strategy of reallocating capital to the Seattle market.”
Commercial real estate services firm Eastdil Secured and law firm DLA Piper LLP advised Boston Properties in the sale of 601 Massachusetts Avenue.
Boston Properties is a publicly traded developer, owner and manager of Class A office space. The Boston-based firm’s portfolio totals 53.2 million square feet across 192 properties, including 12 that are under construction/redevelopment.
Boston Properties’ stock price closed on Friday, Sept. 2 at $80.54 per share, down approximately 29 percent from $113.52 a year ago.
Mori Trust Co. is a real estate developer and investor with a portfolio that includes office buildings, hotels, resorts, apartment communities and retail centers.
— John Nelson