3. Real Estate

Boston Properties, Inc.

Real estate consisted of the following at March 31, 2018 and December 31, 2017 (in thousands):



	March 31, 2018			December 31, 2017
Land	$	5,105,376		$	5,080,679
Land held for future development (1)	204,506			204,925
Buildings and improvements	12,435,573			12,284,164
Tenant improvements	2,266,796			2,219,608
Furniture, fixtures and equipment	41,507			37,928
Construction in progress	1,262,886			1,269,338
Total	21,316,644			21,096,642
Less: Accumulated depreciation	(4,674,838		)	(4,589,634		)
	$	16,641,806		$	16,507,008

_______________


(1)	Includes pre-development costs.

Boston Properties Limited Partnership

Real estate consisted of the following at March 31, 2018 and December 31, 2017 (in thousands):



	March 31, 2018			December 31, 2017
Land	$	5,001,810		$	4,976,303
Land held for future development (1)	204,506			204,925
Buildings and improvements	12,130,901			11,977,062
Tenant improvements	2,266,796			2,219,608
Furniture, fixtures and equipment	41,507			37,928
Construction in progress	1,262,886			1,269,338
Total	20,908,406			20,685,164
Less: Accumulated depreciation	(4,580,949		)	(4,496,959		)
	$	16,327,457		$	16,188,205

_______________


(1)	Includes pre-development costs.

Development

On January 24, 2018, the Company entered into a lease agreement with Leidos for a build-to-suit project with approximately 276,000 net rentable square feet of Class A office space at the Company's 17Fifty Presidents Street development project located in Reston, Virginia. Concurrently with the execution of the lease, the Company commenced development of the project and expects the building to be completed and available for occupancy during the second quarter of 2020.

On January 31, 2018, the Company partially placed in-service its Signature at Reston development project comprised of 508 apartment units and retail space aggregating approximately 515,000 square feet located in Reston, Virginia.

On February 23, 2018, the Company entered into a lease agreement with Fannie Mae to lease approximately 850,000 net rentable square feet of Class A office space at the Company's Reston Gateway development project located in Reston, Virginia. The initial phase of the project will consist of approximately 1.1 million net rentable square feet. The Company expects to begin construction in the second half of 2018 upon receipt of all necessary approvals.

Dispositions

On January 9, 2018, the Company completed the sale of its 500 E Street, S.W. property located in Washington, DC for a net contract sale price of approximately $118.6 million. Net cash proceeds totaled approximately $116.1 million, resulting in a gain on sale of real estate totaling approximately $96.4 million for Boston Properties, Inc. and approximately $98.9 million for Boston Properties Limited Partnership. 500 E Street, S.W. is an approximately 262,000 net rentable square foot Class A office property. 500 E Street, S.W. contributed approximately $0.1 million of net income to the Company for the period from January 1, 2018 through January 8, 2018 and contributed approximately $1.6 million of net income to the Company for the three months ended March 31, 2017.