Saturday, August 8, 2020
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Home Real Estate News Commercial Boston Properties collects 98% of office rents, closes $300M of asset sales

Boston Properties collects 98% of office rents, closes $300M of asset sales

Company also shares building repopulation plans across property regions.

Boston Properties, Inc., a U.S. Class A office properties owner, developer and manager, announced this week that it collected more than 98 percent of its total rent payments from office tenants in June. Meanwhile, the company’s rent collections for all tenants, including retail, were 94 percent.

The company also announced it completed $300 million in asset sales. The sales included 455,000 square feet of Capital Gallery, a Class A office complex in Washington, DC. Boston Properties sold the space to the Smithsonian Institution for approximately $254 million. Boston Properties will retain ownership of approximately 177,000 square feet of the property, which includes 157,000 square feet of office space, 20,000 square feet of retail and 465-space parking garage.

Boston Properties also sold Annapolis Junction Building Eight, a 125,700 square foot vacant office building, and two parcels of land at Annapolis Junction Business Park in Annapolis Junction, MD. The asset was sold for $47 million. Boston Properties had a 50 percent interest in the Annapolis Junction Properties and expects to realize net proceeds of approximately $14 million from the sale after closing costs and the repayment of mortgage debt on the properties.

Additionally, Boston Properties has been working with customers to repopulate its properties through communication and execution of its Healthy Security Plan. All Boston Properties have remained open and repopulation started in June in the Boston, New York and Washington, DC areas. Meanwhile, San Francisco and Los Angeles have issued protocol for office-based worksites to prepare for repopulation of non-essential workers.

“As state and local regulators are starting to reopen the economies in our core markets, we are actively assisting our customers with plans to repopulate their offices,” Boston Properties CEO Owen Thomas said in a statement. “Notwithstanding the challenging economic environment, we are also encouraged by our continued strong rent collections and successful capital raising through asset sales.”

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