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Boston Properties (BXP) Sells D.C. Office Building for $119M


Boston Properties BXP recently inked a deal to vend 500 E St. SW to an affiliate of Boyd Watterson Asset Management, a Cleveland-based company, per bizjournals.com. Sold for $452 per square foot, totaling $118.56 million, the Washington building is leased to International Trade Commission. According to the source, the deal hasn’t been formally announced by either of the companies, but was recorded by the D.C. Recorder of Deeds.

Boston Properties has been focusing on the successful execution of its capital allocation strategy. In particular, the company is boosting its portfolio through a repositioning program by acquisitions, divestitures and development of properties in core markets. Notably, in July 2016, Boston Properties obtained a 49.8% stake in the Colorado Center in Santa Monica, CA. This was made for an aggregate gross amount of approximately $511.1 million. The buyout marked the company’s foray into the expanding Westside Los Angeles market.

Further, a low interest rate environment and lucrative pricing have encouraged the company to pursue active monetization of its assets. For this, it has been focusing on the disposal of non-core assets.

Meanwhile, Boyd Watterson focuses on acquiring properties which are leased by federal agencies. In September 2017, it bought 800 N. Capitol St, NW, a property in D.C., leased by US General Services Administration for $119.75 million or $381 per square foot.

Washington Real Estate Investment Trust WRE also recently issued a non-binding letter of intent to divest 2445 M Street NW — a 292,000-square foot D.C. office building, which has been initiated by Washington REIT with an institutional buyer. The property’s sole tenant, the Advisory Board Company, is likely to vacate it on May 31, 2019. The proceeds from the sale, which is subject to certain conditions, will be announced once it enters into a definitive contract with the buyer.

Shares of Boston Properties have gained 4.6% in the past six months, against the decline of 1.7% recorded by the industry it belongs to. However, the company carries a Zacks Rank #4 (Sell).

Stocks That Warrant a Look

Alexandria Real Estate Equities ARE saw its earnings estimates remain stable for 2017 in the last 60 days. However, its shares have gained 5.2% in the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

One Liberty Properties OLP witnessed an upward earnings estimate revision of 1.9% for 2017 in the last 60 days. Also, its shares have gained 5.9% in the past six months. It currently has a Zacks Rank #2.

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