NEW YORK CITY — Boston Properties has announced plans to suspend construction for its new office development located at 250 W. 55th St. in New York City. The real estate investment trust stated in a press release that the decision stemmed from a lease agreement with a major law firm that fell through. The law firm had reached an agreement with the REIT last year, but recently informed Boston Properties that it could not proceed on those terms. Boston Properties states that the loss of this major tenant “render[ed] the project economically infeasible in today’s environment.” Current plans for the project include the construction of a 1 million square feet office building, which was originally slated for completion in 2011. Construction of the foundation is already under way, and Boston Properties plans to restart construction at a later date. As a result of this decision, the REIT expects to reduce its capital commitments through 2011 by approximately $450 million.
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