Home Commercial Boston Properties to Acquire Seattle’s Safeco Plaza for ~$465MM

Boston Properties to Acquire Seattle’s Safeco Plaza for ~$465MM

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(EDITOR’S NOTE: The Registry had previously reported the asking pricing around $460 million.)

Boston Properties, Inc. (BXP), the largest publicly traded developer, owner, and manager of Class A office properties in the United States, announced today that it has entered into a binding agreement to acquire Safeco Plaza, a 50-story, 800,000 square-foot, LEED-Platinum certified, Class A office property in Seattle, Washington. This acquisition will mark the Company’s initial entry into the Seattle market, one of the most vibrant markets in the U.S. for companies in the technology, life sciences, financial services, and manufacturing sectors.

The Company plans to complete the acquisition through a joint venture with one of the participants in its recently announced Co-Investment Program. BXP expects to own up to a 51% interest in the joint venture. The gross purchase price for the property is approximately $465 million (around $574 per square foot).

With its distinctive position in Seattle’s skyline, Safeco Plaza occupies a full city block in Seattle’s Central Business District with panoramic views of the Seattle skyline, Puget Sound, and Olympic Mountains. The Property is well located within the city’s active urban center, adjacent to retail, restaurants, and outdoor plazas and courtyards. Safeco Plaza is a highly desirable location for tenants across market sectors, with a Walk Score of 99 and a Transit Score of 100, offering immediate access to Seattle’s Link Light Railand Metro Bus Lines, as well as adjacency to the future extensions of the Ballard Link Rail and SLU Streetcar lines. The property features elegant architecture, a large outdoor plaza, generous window lines and spectacular views. Large floor plates with a central core provide efficiency and flexibility for a variety of tenant sizes. Safeco Plaza is 90% leased with 17-year average tenure among the Property’s largest tenants.

“Safeco Plaza is an important initial foray into the Seattle market, reinforcing our rich history of owning, managing and improving premier, class A properties in each of our chosen markets,” said Owen Thomas, CEO of BXP. “This acquisition provides an excellent platform for BXP to expand and grow in one of the strongest office markets in the United States.”

With significant job growth from the technology and life sciences sectors, Seattle grew faster than any large city in 2020 and continues to rank as one of the top tech markets for employers and employees.

“We are delighted to enter the Seattle market with the acquisition of this iconic property in the center of the city’s business district,” said Kelley Lovshin, Director, Business Development – Seattle of BXP. “With its locational prominence, high-quality tenant base, and strong track record of tenant retention, Safeco Plaza will provide significant future growth opportunities for BXP. We look forward to establishing BXP as the landlord of choice for Safeco Plaza tenants and to becoming a valuable partner with the Seattle community.”

This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “will,” “expects,” “intends” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, Boston Properties’ ability to satisfy the closing conditions and/or complete the transaction on the terms currently contemplated or at all, the risks inherent in entering new markets and other risks and uncertainties detailed from time to time in Boston Properties’ filings with the SEC. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About Boston Properties

Boston Properties is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in five markets – Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s portfolio totals 51.6 million square feet and 196 properties, including nine properties under construction/redevelopment. For more information about Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.