The John Hancock Tower, Boston's tallest building, will be sold to real estate investment trust Boston Properties Inc. (BXP) for about $930 million.
Boston Properties will pay about $290 million in cash for the 62-story, 1.7 million-square-foot building, and will assume about $640 million in debt, Boston Properties said in a statement today. The REIT will complete its acquisition of the property, which also includes an eight-story garage, by the end of the year, and will fund certain capital improvements already begun by the seller, a joint venture between Normandy Real Estate Partners and Five Mile Capital Partners.
Boston Properties is buying into a Boston office market that during the second-quarter had an office vacancy rate of about 12%, the fifth-lowest of all U.S. metropolitan areas, according to Cushman & Wakefield. The REIT owned 144 properties totaling almost 51 million square feet, including about 9.4 million square feet in greater Boston, as of June 30.
Built in Boston's Back Bay district in 1976, John Hancock Tower is the city's tallest building and the 50th-tallest in the U.S.