Boston – Boston Properties, Inc. (BXP) announced it completed the disposition of 601 Massachusetts Avenue, NW, Washington, D.C., for a gross sales price of $531 million and net proceeds of approximately $512 million. The gross sales price equates to approximately $1,100 per rentable square foot.
The building at 601 Massachusetts Avenue is an 11-story, approximately 480,000sf office property originally developed by BXP in 2015 and currently 98% leased. BXP will continue to provide property management services to the new owner.
BXP structured the disposition as part of a reverse like kind exchange under Section 1031 of the Internal Revenue Code with its recent acquisition of Madison Centre in Seattle. As a result, BXP expects to defer the recognition of taxable gains from the sale for federal income tax purposes. BXP acquired Madison Centre, an approximately 755,000sf, 37-story, LEED-Platinum certified, Class A office property, on May 17 for $730 million.
“This disposition demonstrates continued investor demand for premier, well-leased office properties,” said Owen Thomas, chairman and CEO, BXP. “The completion of this transaction is an important milestone in BXP’s current strategy of reallocating capital to the Seattle market.”
BXP was represented in the transaction by Eastdil Secured and DLA Piper LLP (US).