Washington, D.C., office sells for $531m

Boston Properties (BXP) has completed the disposition of 601 Massachusetts Avenue NW, Washington, D.C., for a gross sales price of $531 million and net proceeds of approximately $512 million. The gross sales price equates to approximately $1,100 per rentable square foot.

The new owner was not disclosed; however, it is Tokyo-based Mori Trust Co., according to media reports.

601 Massachusetts Avenue is an 11-story, approximately 480,000-square-foot office property originally developed by BXP in 2015 and currently 98 percent leased. BXP will continue to provide property management services to the new owner.

BXP structured the disposition as part of a reverse like kind exchange under Section 1031 of the Internal Revenue Code with its recent acquisition of Madison Center in Seattle. As a result, BXP expects to defer the recognition of taxable gains from the sale for federal income tax purposes. BXP acquired Madison Center, an approximately 755,000-square-foot, 37-sto