XML 25 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Real Estate
 6 Months Ended
Jun. 30, 2020
Real Estate [Abstract]  
Real Estate
3. Real Estate
Boston Properties, Inc.
Real estate consisted of the following at June 30, 2020 and December 31, 2019 (in thousands):
June 30, 2020December 31, 2019
Land$5,070,126  $5,111,606  
Right of use assets - finance leases237,394  237,394  
Right of use assets - operating leases147,512  148,640  
Land held for future development (1)414,053  254,828  
Buildings and improvements13,488,860  13,646,054  
Tenant improvements2,664,294  2,656,439  
Furniture, fixtures and equipment44,635  44,313  
Construction in progress893,935  789,736  
Total22,960,809  22,889,010  
Less: Accumulated depreciation(5,292,389) (5,266,798) 
$17,668,420  $17,622,212  
_______________
(1)Includes pre-development costs.
Boston Properties Limited Partnership
Real estate consisted of the following at June 30, 2020 and December 31, 2019 (in thousands):
June 30, 2020December 31, 2019
Land$4,972,910  $5,011,153  
Right of use assets - finance leases237,394  237,394  
Right of use assets - operating leases147,512  148,640  
Land held for future development (1)414,053  254,828  
Buildings and improvements13,209,267  13,351,286  
Tenant improvements2,664,294  2,656,439  
Furniture, fixtures and equipment44,635  44,313  
Construction in progress893,935  789,736  
Total22,584,000  22,493,789  
Less: Accumulated depreciation(5,190,360) (5,162,908) 
$17,393,640  $17,330,881  
_______________
(1)Includes pre-development costs.
Developments
On March 26, 2020, the Company completed and fully placed in-service 17Fifty Presidents Street located in Reston, Virginia. 17Fifty Presidents Street is a build-to-suit project with approximately 276,000 net rentable square feet of Class A office space that is 100% leased.
On June 1, 2020, the Company completed and fully placed in-service 20 CityPoint, a Class A office project with approximately 211,000 net rentable square feet located in Waltham, Massachusetts that is 62% leased.
On June 26, 2020, the Company completed the acquisition of real property at 777 Harrison Street (known as Fourth + Harrison and formerly known as 425 Fourth Street) located in San Francisco, California for a gross purchase price, including entitlements, totaling approximately $140.1 million. Fourth + Harrison is expected to support the development of approximately 804,000 square feet of primarily commercial office space.
Dispositions
On January 28, 2020, the Company entered into a joint venture with a third party to own, operate and develop properties at its Gateway Commons complex located in South San Francisco, California. The Company contributed its 601, 611 and 651 Gateway properties and development rights with an agreed upon value aggregating approximately $350.0 million for its 50% interest in the joint venture. 601, 611 and 651 Gateway consist of three Class A office properties aggregating approximately 768,000 net rentable square feet. The partner contributed three properties and development rights with an agreed upon value aggregating approximately $280.8 million at closing and will contribute cash totaling approximately $69.2 million in the future for its 50% ownership interest in the joint venture. As a result of the partner’s deferred contribution, the Company has an initial approximately 55% interest in the joint venture. Future development projects will be owned 49% by the Company and 51% by its partner. Upon the partner’s contribution, the Company ceased accounting for the joint venture entity on a consolidated basis and is accounting for the joint venture entity on an unconsolidated basis using the equity method of accounting, as it has reduced its ownership interest in the joint venture entity and no longer has a controlling financial or operating interest in the joint venture entity (See Note 5). The Company recognized a gain on the retained and sold interest in the real estate contributed to the joint venture totaling approximately $217.7 million for Boston Properties, Inc. and $222.4 million for Boston Properties Limited Partnership during the six months ended June 30, 2020 within Gains on Sales of Real Estate on the respective Consolidated Statements of Operations, as the fair value of the real estate exceeded its carrying value. 601, 611 and 651 Gateway contributed approximately $0.2 million of net income to the Company for the period from January 1, 2020 through January 27, 2020 and contributed approximately $3.1 million and $6.0 million of net income to the Company for the three and six months ended June 30, 2019, respectively.
On February 20, 2020, the Company completed the sale of New Dominion Technology Park located in Herndon, Virginia for a gross sale price of $256.0 million. Net cash proceeds totaled approximately $254.0 million, resulting in a gain on sale of real estate totaling approximately $192.3 million for Boston Properties, Inc. and approximately $197.1 million for Boston Properties Limited Partnership. New Dominion Technology Park is comprised of two Class A office properties aggregating approximately 493,000 net rentable square feet. New Dominion Technology Park contributed approximately $1.6 million of net income to the Company for the period from January 1, 2020 through February 19, 2020 and contributed approximately $2.1 million and $4.2 million of net income to the Company for the three and six months ended June 30, 2019, respectively.
On June 25, 2020, the Company completed the sale of a portion of its Capital Gallery property located in Washington, DC for a gross sale price of approximately $253.7 million. Net cash proceeds totaled approximately $246.9 million, resulting in a gain on sale of real estate totaling approximately $203.8 million for Boston Properties, Inc. and approximately $207.2 million for Boston Properties Limited Partnership. Capital Gallery is an approximately 631,000 net rentable square foot Class A office property. The portion sold was comprised of approximately 455,000 net rentable square feet of commercial office space. The Company continues to own the land, underground parking garage and remaining commercial office and retail space containing approximately 176,000 net rentable square feet at the property. The sold portion of Capital Gallery contributed approximately $2.9 million and $6.3 million of net income to the Company for the period from April 1, 2020 through June 24, 2020 and the period from January 1, 2020 through June 24, 2020, respectively, and contributed approximately $3.5 million and $7.0 million of net income to the Company for the three and six months ended June 30, 2019, respectively.