PRINCETON, NJ-Well, that was quick. Boston Properties has terminated its agreement to sell its 2 million-square-foot Carnegie Center portfolio here to an entity affiliated with the Landis Group, the project’s original developer, for $468 million.
The 1031 exchange was announced on April 25, with the note that either side could terminate the agreement at any time prior to June 21, 2011, without cost or payment to the other party.
Boston Properties terminated the sale because “they were not going to be able to close” by the June 21 deadline, Arista Joyner, the company’s investor relations manager, tells GlobeSt.com. She declines to say whether the complex would be put back on the market.
The 16-building, class A office park is set on 560 acres on Route 1, halfway between New York City and Philadelphia. Boston Properties acquired the portfolio in 1998, and in addition to management and leasing services, expanded the project by 300,000 square feet. The building is 86.6% occupied, Boston Properties president Douglas T. Linde said at the company’s May quarterly conference call, with a projected average occupancy of approximately 83% for this year.
“When we purchased the asset, we had hoped to avail ourselves of the opportunity to develop almost two million square feet of additional space. The Princeton market has been very stable, but has not exhibited the conditions necessary to achieve this objective,” Linde said in May. "We've been able to grow our portfolio in other markets and if we complete the sale, we will redeploy our capital.”
The termination of the agreement will not affect future development and acquisition plans, Joyner adds. “We knew there was a chance this could happen," she says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
