Deal for Hancock Tower complete

December 31, 2010|Associated Press

Boston Properties Inc. said Wednesday it has completed the acquisition of the 62-story John Hancock Tower and Garage in Boston for $930 million, including the assumption of debt.

The real estate investment trust purchased the skyscraper from a joint venture comprising affiliates of Normandy Real Estate Partners and Five Mile Capital Partners.

Under the terms of the deal, Boston Properties paid $289.5 million in cash for the office tower and assumed $640.5 million in debt in the form of a securitized senior mortgage loan.

The mortgage has a fixed, 5.68 percent interest and comes due in January 2017.

Boston Properties anticipates it will incur about $3 million in acquisition-related costs from the deal. The company plans to record $1 million of the costs in the fourth quarter.

The John Hancock Tower has roughly 1.7 million square-feet of rentable space.

The garage spans eight levels and has more than 2,000 parking spaces.

Shares of Boston Properties closed up 2 cents yesterday at $86.53.

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