Boston Props to sell NJ office park for $468M

New York /
Apr.April 25, 2011 10:28 PM

Boston Properties said it agreed to sell Carnegie Center, a 2 million square foot office park in Princeton, N.J., to a joint venture between Normandy Real Estate Partners and the Landis Group for $468 million.

In January, Doug Linde, president of Boston Properties, said the company might sell most or all of the 16-building complex, as part of a group of suburban properties that it was thinking about selling.

“I talked to Carnegie Center and we’re recapitalizing to sell a significant portion or a full on the entire Carnegie Center asset base depending on what that pricing looks like,” Linde told analysts in the January call, according to a transcript from SeekingAlpha.com. “We’d like to try and retain management and development because we still control the land for another seven-plus years and that will kind of play out.”

The firm said that the deal is contingent on closing by June 21, 2011, as part of a “like kind exchange,” under section 1031 of the Internal Revenue code, adding that either party may end the agreement at any time, without penalty.

Analysts said the complex was about 87 percent occupied and Colliers International is reporting that average asking rents are $26.31 per square foot in the Princeton area.

Normandy, based in Morristown, N.J., previously acquired a 1.6 million-square-foot property in Westchester in 2009, and announced plans in late February to launch a new brand for the Exchange and a multi million-dollar renovation of the complex.

Normandy and Five Mile Capital previously sold the John Hancock Tower to Boston Properties for $930 million. Under that deal, Normandy will continue to manage the Hancock Tower for two years.


Related Articles

arrow_forward_ios
Clockwise from top left: Boston Properties' Owen Thomas; Empire Real Estate Trust's Tony Malkin; Equity Commonwealth's David Helfand; Columbia Property Trust's Nelson Mills; SL Green's Marc Holliday; Vornado Realty Trust's Steve Roth; and Brookfield's Brian Kingston (Getty)

Office unease: Tenants are paying up but staying away

Office unease: Tenants are paying up but staying away
Mort Zuckerman and Harry Macklowe with 510 Madison Avenue (Getty, Google Maps)

Harry Macklowe sues Boston Properties for $30M

Harry Macklowe sues Boston Properties for $30M
Boston Properties CEO Owen Thomas (Photo by Axel Dupeux)

Boston Properties’ Q3 income drops 17%

Boston Properties’ Q3 income drops 17%
Boston Properties president Doug Linde and an Ann Taylor store (Getty)

Major retailers are squatting on prime real estate

Major retailers are squatting on prime real estate
Harry Macklowe and the GM Building at 767 Fifth Avenue (Getty, Michele Ursino via Flickr)

Harry Macklowe is behind on rent for HQ at GM Building: report

Harry Macklowe is behind on rent for HQ at GM Building: report
The Moinian Group's Joseph Moinian, 3 Hudson Boulevard and Boston Properties' Owen Thomas (Credit: The Moinian Group, FX Collaboratiive and Boston Properties)

Hudson Yards district’s newest office tower to cost $2.6B

Hudson Yards district’s newest office tower to cost $2.6B
Owen Thomas (Photo by Axel Dupeux)

The Closing: Owen Thomas

The Closing: Owen Thomas
575 Lexington Avenue (Credit: Google Maps, iStock)

Normandy looks to sell 575 Lex for more than $650M

Normandy looks to sell 575 Lex for more than $650M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...