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Boston Properties Pays Nearly $4B for Portfolio

NEW YORK CITY-Boston Properties pays Macklowe Properties $3.95 billion to acquire the General Motors Building and other properties here.

By Ian Ritter | Updated on May 27, 2008

NEW YORK CITY-Boston Properties has entered an agreement to acquire the General Motors Building and three other Manhattan assets for almost $3.95 billion, as was speculated last week . The REIT is spending just under $1.47 billion in cash, $10 million in stock and will assume about $2.5 billion on debt.

“The idea of a REIT like Boston Properties or any other REIT for that matter stepping up to the plate and doing a deal here is that they bring a lot to the table,” Anthony Paolone, an analyst at JP Morgan, tells GlobeSt.com. “They are liquid, they are good operators, they know the market, they know the assets and they have the ability to underwrite and close quickly on the transaction.” he says.

On the two-million-sf GM Building, located between 58th and 59th streets at Fifth Avenue and Central Park South, the firm is assuming $1.9 billion of secured and mezzanine loans. That part of the deal is set to close next month.

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