BOSTON—Boston Properties, Inc. has completed the previously announced sale of a 45% ownership interest in Times Square Tower for a gross purchase price of $684 million in cash. In connection with the sale, Boston Properties formed a joint venture with an affiliate of Norges Bank. In addition to retaining a 55% interest in the venture, Boston Properties will provide customary property management and leasing services for the venture. The property is unencumbered by debt. Boston Properties expects that it would distribute at least the amount of proceeds necessary to avoid paying a corporate level tax on the gain realized from the sale.

Times Square Tower is a 1.2-million square foot, Class A office tower, including associated retail space and signage, located in the heart of Times Square in New York City. It was developed by Boston Properties and completed in 2004, and it is currently 99% leased. The property is subject to a ground lease with the city of New York with 76 years remaining, and it benefits from a Payment In Lieu of Taxes (PILOT) program through June 2024. The joint venture will hold the contractual right to purchase the fee interest in the property beginning in July 2024.

Boston Properties is one of the largest owners and developers of Class A office properties in the United States, concentrated in five markets–Boston, New York, Princeton, San Francisco and Washington, DC.