Boston Properties has agreed to purchase the famous John Hancock Tower in the Copley Square area. This appears to be good news since this would seem a longer term commitment to the property than the current partnership of Normandy Real Estate Partners and Five Mile Capital Partners intended.
They bought the property in foreclosure last year for around $660 million. Both firms are headquartered outside of Massachusetts while Boston Properties is headquartered here. The agreement is for $930 million which parties hope will close by the end of the year.
Normandy and Five Mile have put some work into increasing the value of this top tier property by signing a strong tenant, Bain Capital, to a 15 year lease ranging from 200,000 to 270,000 square feet(depending on whether they exercise options to expand). This is said to include at least 7 floors based on the press release that was issued back in May.
This deal appears to be good news on the commercial office space front which has been challenged along with the rest of the US economy. Here is a link to the Boston Properties press release on the signing of the agreement. Boston Properties is currently developing Atlantic Wharf on the Boston Waterfront. It owns other well-known Boston building like the Prudential Tower and 111 Huntington Avenue just to name a few.