Boston Properties and Hines Close on Record Land Sale for… - Hines

Boston Properties and Hines Close on Record Land Sale for Transbay Transit Tower Parcel

Ceremonial Groundbreaking of the West Coast's Tallest Tower Scheduled

Boston, MA – Hines and Boston Properties (NYSE: BXP) announced today that it will ceremonially break ground to celebrate the acquisition of 101 First Street, a land parcel sold by Transbay Joint Powers Authority (TJPA) for approximately $192 million. The sale of the 50,000- square-foot parcel closed today at nearly $4,000 per land foot. The firms are now set to develop the Transbay Transit Tower, a new Pelli Clarke Pelli-designed icon adjacent to the Transbay Transit Center, a multi-modal transportation hub and the new heart of the revitalized South of Market San Francisco neighborhood. It was also announced that a partnership of Clark Construction and Hathaway Dinwiddie will serve as general contractors for the soaring, 60-story office building at Mission and First streets.

At 1,070 feet, the tower is set to be the tallest on the United States’ West Coast and the seventh tallest in the U.S., edging out New York’s Chrysler Building. The project was initiated in 2007 and received planning approval in October of 2012. Construction of the 1.4 million-square-foot tower could begin as early as summer 2013 with project completion in 2016, just before the opening of the new transit facility.

A ceremonial groundbreaking celebration is scheduled to occur on March 27, 2013 with such dignitaries in attendance as: San Francisco Mayor Edwin M. Lee; TJPA Executive Director Maria Ayerdi-Kaplan, Chair of the TJPA Board and Supervisor Jane Kim, along with other board members, as well as Boston Properties Chairman and CEO Mortimer B. Zuckerman; and Hines Chairman Gerald D. Hines.

“The sale of the Transbay Transit Tower property is a transformative moment for San Francisco,” said Executive Director of the TJPA, Maria Ayerdi-Kaplan.

“The Tower and the Transbay Transit Center will stand at the center of one of the most forward-looking transit-oriented developments in the world today.”

Zuckerman commented, “We are dedicated to making this an iconic tower that will stand as a landmark for all who travel to San Francisco and add to its appeal as one of our most sought after 24/7 cities in the U.S. on top of being the technology capital of the world.”

Hines Senior Managing Director Paul Paradis notes, “Tenant interest in the financial, professional services and tech sectors has been extremely high. Now that we are closing on the land and moving full speed ahead with the design, I’m confident that discussions will progress into leasing quickly. Transbay will be a new icon for the city and state, but also a beacon for a progressive anchor tenant looking for the finest, sustainable office space.”

"This record transaction signifies the investor confidence that we all have in San Francisco’s future,” said San Francisco Mayor Edwin M. Lee.

“Soon to be the West Coast’s tallest building, the Transbay Tower benefits not only a world-class transit facility but also represents the strength of our City’s economic recovery, providing jobs to build a better, more sustainable future.”

“Investments in transportation are fueling our economic recovery and the Transbay Terminal epitomizes how federal support helps attract and leverage private investment,” said U.S. Transportation Secretary LaHood. “Construction of the Transit Tower will create thousands of jobs today, while positioning the surrounding neighborhood to become a major employment center for the Bay Area for generations to come.”

Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class A office space, one hotel, three residential properties and four retail properties. The company 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, D.C.

Hines is a privately owned real estate firm involved in real estate investment, development and management. The firm’s historical and current portfolio of projects underway, completed, acquired and managed includes 1,208 properties representing more than 488 million square feet. With offices in 104 cities in 18 countries, and controlled assets valued at approximately $23.8 billion, Hines is one of the most respected real estate organizations in the world.

This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions (including the impact of the European sovereign debt issues), the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of regulatory changes and other risks and uncertainties detailed from time to time in Boston Properties’ filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Hines

Headquarters

Global Headquarters

2800 Post Oak Blvd.
Houston, TX 77056-6188
United States
713 621 8000
Contact Hines

European Headquarters

5 Welbeck St.
London W1G 9YQ
United Kingdom
44 20 7292 1900
44 20 7292 1901 fax

Regional Offices

U.S. East Region

345 Hudson Street
12th Floor
New York, NY 10014
United States
212 230 2300

U.S. Midwest Region

444 West Lake Street
Suite 2400
Chicago, IL 60606
United States
312 419 4900

U.S. Southeast Region

5 Ravinia Dr NE
Atlanta, GA 30346
United States
770 206 5300
770 206 5325 fax

U.S. Southwest Region

609 Main St.
Suite 2400
Houston, TX 77002
United States
713 237 5600

U.S. West Region

101 California Street
Suite 1000
San Francisco, CA 94111-5894
United States
415 982 6200
415 398 1442 fax

Asia Pacific Region

1 Connaught Road, 28F
Central, Hong Kong

Eurasia Region

Gasheka Street 6
Ste. 820
Moscow 125047
Russia
7 495 785 05 00

European Region

5 Welbeck St.
London W1G 9YQ
United Kingdom
44 20 7292 1900
44 20 7292 1901 fax

International Offices

Australia

20 Hunter St
Level 10
Sydney, NSW 2000
Australia
61 2 9232 3137

Brazil

Av. das Nações Unidas, 12901
Torre Norte - 6 ° andar
São Paulo 04578-910
Brazil
55 11 5504 7600

Canada

200 King Street West
Suite 1805
Toronto, ON M5H 3T4
Canada
416 595 1949

China

Suite 333, Hyundai Motor Tower
38 Xiaoyun Road, Chaoyang District
Beijing, PRC 100027
China
8610 8453 8855
8610 8453 9866 fax

France

66 Avenue Charles de Gaulle
Neuilly-sur-Seine, IDF 92522
France
33 1 41 45 80 80
33 1 41 45 80 81 fax

Germany

Hines Immobilien GmbH
Joachimsthaler Str. 1
D - 10623 Berlin
Germany
49 30 726241 100
49 30 726241 109 fax

Greece

Voukourestiou 19
Athens 106 71
Greece
30 210 364 7895

India

One Horizon Center
12th Floor
Gurgaon, Haryana 122002
India
91 124 480 2222

Ireland

Block 2, First Floor
Clanwilliam House, Clanwilliam Place
Dublin 2
Ireland
353 1 7999900
353 1 7 999931 fax Dublin.OfficeAdmin@hines.com

Italy

Via Broletto, 35
Milan 20121
Italy
0039 02 8962921

Japan

Akasaka K Tower Level 4
1-2-7 Motoakasaka, Minato-ku
Tokyo 107-0051
Japan
81 90 9854 5236

Luxembourg

35 F, John F. Kennedy
Luxembourg L-1855

352 264 337 1
352 264 337 37 fax

Mexico

Torre del Angel
Reforma 350
Mexico D.F. 06600
Mexico
52 55 52428809

The Netherlands

Gustav Mahlerplein 28
Amsterdam, NH 1082 MA
Netherlands
31 6 30 70 81 29

Nordic Countries

Forbindelsesvej 4
Copenhagen 2100
Denmark
44 7815 285 191

Panama

Torre B Piso 15
Torre de las Americas
Punta Pacifica, Panama City
Panama
507 028 20 7375
507 300 99 75 fax

Poland

Prosta Street 68
Warsaw 00-838
Poland
48 22 351 2400
48 22 351 2401 fax

Russia

Gasheka Street 6
Ste. 820
Moscow 125047
Russia
7 495 785 05 00
7 495 785 05 10 fax

Spain

Sor Ángela de la Cruz, 2° - 2° C
Edificio Cuzco III
Madrid 28020
Spain
34 91 703 00 23
34 91 359 89 71 fax

South Korea

Glass Tower, Level 20
534 Teheran-ro, Gangnam-gu
Seoul 06181
Republic of Korea
82 2 3439 9141

United Kingdom

5 Welbeck St.
London W1G 9YQ
United Kingdom
44 20 7292 1900
44 20 7292 1901 fax