Boston Properties Acquires In-Development High-Rise in South Financial Submarket, Sets Sights on Mixed-Use Opportunity in Virginia
By Alex Girda, Associate Editor
Another major San Francisco office project is the object of a large commercial real estate transaction, after Boston Properties recently announced the purchase of 535 Mission Street. The project, located in the city’s South Financial submarket, was previously owned by Beacon Capital Partners. The company is set to revive the development process halted back in 2008, as construction is set to re-commence by the end of the month.
The overall cost of the acquisition is clocked in at around $71 million, with Boston Properties now owning not only the development site, but all materials purchased up to the point of the deal and the existing construction at the site.
535 Mission Street is a project for a 27-story building with a massive height of 378 feet. The building will offer 307,000 square feet of leasable Class A office and retail space in a LEED Gold certified environment. The property is set to cater to tech tenants looking to relocate or expand in the booming tech-oriented office market of the San Francisco Bay Area.
Design-wise, the building will feature a glass front, column-free floor plates, and will offer residents views of San Francisco and the neighboring bay. The development process could take the company’s overall investment in the office property to around $215 million, a recently issued company statement shows. A completion date is set for the fall of 2014.
Apart from being the new owner of the in-development office project at 535 Mission Street, Boston Properties has also secured the last available land parcel at the Reston Town Center. The company shelled out approximately $27 million for the property, which is currently zoned for a possible development of 250,000 square feet of office space. Boston reportedly has its sights set for a mixed-use development that could see a residential component take shape at the Reston Town Center.
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