How Boston Properties Figures Its CBD Office Traded for Over $1,000 Per/SF
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505 9th St., NW
WASHINGTON, DC—This past summer Boston Properties CEO Owen Thomas told shareholders during the REIT’s second quarter earnings call that it had a domestic buyer under contract for a 325,000-square foot CBD office at 505 9th St., NW (the building’s alternative address is 500 8th St., NW).
He told listeners the amount ($318 million) and the price per square foot ($977) and the forward NOI cap rate (4.4%).
He didn’t reveal the buyer, however. Now we know:Prudential Real Estate Investors acquired the 10-story office property on behalf of institutional investors.
We also know the reason following the company’s statement on the deal, although frankly this we could have guessed. “With an improving employment outlook and the expectation that tenants’ flight to quality and amenities will continue to drive long-term demand for premier office product in the East End, 500 8th Street is well-positioned to generate strong and stable cash flows for our investors,” Kevin R. Smith, head of Americas for PREI, says in a prepared statement…
How Boston Properties Figures Its CBD Office Traded for Over $1,000 Per/SF
