Boston Properties Buys 360 Park Avenue South for $300M

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Boston Properties has closed on its long-planned purchase of the leasehold interest of 360 Park Avenue South for $300 million from Empire Asset Management, the real estate investment trust announced Monday.

The $300 million purchase price includes the assumption of a $200 million mortgage and the issuance of 866,503 shares of common stock in Boston Properties Limited Partnership, the company’s operating partnership. 

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The 20-story, 470,000-square-foot building between East 25th and East 26th streets will be vacant at the end of December once its master lease with business information company RELX expires, as Commercial Observer previously reported.

CBRE’s Darcy Stacom, Bill Shanahan and Doug Middleton brokered the deal. A CBRE spokesperson didn’t immediately respond to a request for comment.

Boston Properties has refinanced the property with a new $220 million, three-year mortgage loan. Two unnamed joint venture partners apparently co-own the building with Boston, which has a 42 percent interest in the building and will serve as its managing partner. The real estate investment trust also plans to renovate and modernize the property, including updates to building systems, amenities and collaborative spaces, per the press release. 

“360 Park Avenue South is ideally located for the growing cluster of technology companies in Midtown South,” said Hilary Spann, an executive vice president at Boston Properties. “The addition of thoughtfully curated amenities, public, and private spaces delivered through the repositioning will create a workspace unmatched for creative and technology companies looking to the future of work.”

Rebecca Baird-Remba can be reached at rbairdremba@commercialobserver.com.