WASHINGTON, D.C. — Boston Properties (NYSE: BXP) has entered into a binding agreement for the sale of a Class A office building located at 505 9th St. NW in Washington, D.C. for approximately $318 million, including the assumption of $117 million in mortgage debt. The buyer of the 321,943-square-foot building was undisclosed. Boston Properties developed and built the property in 2007.
Boston Properties owns a 50 percent interest in the office building as part of a joint venture. The completion of the sale is expected by the end of the third quarter.
505 9th St. NW is located midway between the White House and the U.S. Capitol and just two blocks from both Pennsylvania Avenue and the Verizon Center. The site is situated in the heart of the Penn Quarter in Washington D.C.’s East End submarket.
The property features three levels of below-grade parking, two outdoor/roof top decks, a fitness center and in-building retail amenities, including an entertainment club. The primary tenant is law firm DLA Piper. Other tenants include AARP, law firm Duane Morris LLP and American College of Radiology.
Boston Properties reported that its funds from operations (FFO), a closely watched metric among REITs, were $208.7 million in the second quarter, or $1.36 per share on a diluted basis. That’s up from the previous year’s FFO of $207 million, or $1.35 per share diluted.
As of June 30, the company’s portfolio consisted of 170 properties totaling approximately 46.3 million square feet, including 13 properties under construction/redevelopment totaling 4.2 million square feet. Total space leased from those properties as of June 30 was 91 percent.
Boston Properties’ stock price closed Thursday, July 30, at $123.34 per share, up from $120.98 per share one year ago.